You would expect economic activity to increase if investment spending, spending from borrowing and transfer payments, government purchases, and exports were:
A) equal to saving, taxes, and imports.
B) less than saving, taxes, and imports.
C) greater than saving, taxes, and imports.
D) decreasing, and saving, taxes, and imports were increasing.

Question

Quizplus · Accepted Answer

Economic activity tends to increase when there is a net injection into the economy, which occurs when investment spending, government purchases, and exports (which inject money into the economy) are greater than savings, taxes, and imports (which withdraw money from the economy).

You Would Expect Economic Activity to Increase If Investment Spending