The equilibrium level of national income in the economy is where _______________.
A)the ratio of leakages to savings = the ratio of injection to consumption
B)leakages = injections
C)leakages + injections = consumption + investment
D)consumption - investment = zero

Question

Quizplus · Accepted Answer

Equilibrium level of national income is where the total leakages (saving, taxes, and imports) equal the total injections (investment, government spending, and exports). Therefore, the correct statement is "leakages = injections," which is only true for option B.

The Equilibrium Level of National Income in the Economy Is