If the level of economic activity were increasing, you would expect leakages from the spending stream to be less than injections.

Question

Quizplus · Accepted Answer

When the level of economic activity is increasing, it generally means that investments, government spending, and exports (injections into the economy) are greater than savings, taxes, and imports (leakages from the economy), leading to a net increase in economic activity.

If the Level of Economic Activity Were Increasing, You Would