Which of the following markets must clear if injections from the income-spending stream are to equal leakages from the stream?
A) The resource market
B) The labor market
C) The goods market
D) The aggregate market
E) The loanable funds market

Question

Quizplus · Accepted Answer

The loanable funds market is the market in which savings (leakages) are matched with investment (injections). If injections from the income-spending stream equal leakages, then the loanable funds market must clear. The resource market, labor market, goods market, and aggregate market are not directly related to injections and leakages.

Which of the Following Markets Must Clear If Injections from the Income-Spending