An economy will expand when:
A) the multiplier is zero.
B) the multiplier is a negative number.
C) total leakages are less than total injections.
D) total leakages are greater than total injections.

Question

Quizplus · Accepted Answer

An economy expands when total injections (such as investments, government spending, and exports) into the economy are greater than total leakages (such as savings, taxes, and imports). This leads to an increase in the overall economic activity.

An Economy Will Expand When