If, using the Keynesian approach, injections into the spending stream were $2.20 trillion, leakages from the spending stream were $2.50 trillion, and total output in the economy was $4.00 trillion, total spending would be:
A) $3.70 trillion.
B) $4.00 trillion.
C) $4.30 trillion.
D) none of the above.

Question

Quizplus · Accepted Answer

Total spending is equal to injections minus leakages. In this case, injections are $2.20 trillion and leakages are $2.50 trillion, so total spending is $2.20 trillion - $2.50 trillion = $3.70 trillion.

If, Using the Keynesian Approach, Injections into the Spending Stream