In an open economy,injections and leakages are related as:

Question

Quizplus · Accepted Answer

In an open economy, injections are investment (I), government spending (G), and exports (X), while leakages are savings (S), taxes (T), and imports (M). Therefore, the equation that relates injections and leakages in an open economy is I + G + X = S + T + M. This is because injections into the economy must equal leakages out of the economy in order for the economy to be in equilibrium.

In an Open Economy,injections and Leakages Are Related As