The table given below shows the levels of national income (Y)and the corresponding levels of saving (S), investment (I), export (X), and import (M)of an open economy. Table 10.2
Consider the economy described in Table 10.2.At an income level of $2, 100:

Question

The table given below shows the levels of national income (Y)and the corresponding levels of saving (S), investment (I), export (X), and import (M)of an open economy. Table 10.2
 Consider the economy described in Table 10.2.At an income level of $2, 100:

Quizplus · Accepted Answer

At an income level of $2,100, the total outflow is $1,800 ($700 consumption + $300 taxes + $500 imports + $300 savings), which is less than the total inflow of $2,300 ($2,100 income + $200 exports). Therefore, injections (exports and investment) exceed leakages (saving and imports) by $500.

The Table Given Below Shows the Levels of National Income