The phrase "leakages equal injections" means:
a. that money lost buying imports equals the money injected from people in foreign countries buying our exports.
b. that government must purchase surplus grain and other agricultural commodities to inject enough income into the farm economy to make up for leakages due to floods and other natural disasters.
c. that aggregate income arising from the production of goods and services equals the aggregate expenditures on that production.
d. that total consumption of households equals total investment of the firms.
c
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A consequence of a negative externality is that social costs __________ private costs, and the efficient level of output __________
A) equal; does not require any type of government intervention B) are less than; requires the government to create a subsidy C) are greater than; requires the government to impose a tax D) are greater than; requires the government to create a subsidy E) are less than; requires the government to impose a tax