The amount of income in an economy is always equal to the amount of money in the economy.

Question

Quizplus · Accepted Answer

The amount of income in an economy can be measured by factors like GDP, wages, salaries, and profits. The amount of money in an economy can include both physical currency and digital transactions, but it may not necessarily be equal to the total income generated. Money can also be used for saving, investing, and paying off debt, which reduces the amount of money available for spending and may not directly contribute to income. Therefore, the statement is false.

The Amount of Income in an Economy Is Always Equal