Suppose for an economy, investment = $40; saving = $50, government spending + exports = 100; and taxes + imports = $110 . Then for this economy, total leakages exceed total injections by $20, so there will be pressure for the economy to contract

a. True
b. False
Indicate whether the statement is true or false

True

Economics

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If the current account has a positive balance of $100 and the capital and financial account has a negative balance of $90, there will be ________ in official reserves of ________

A) a decrease; $10 B) an increase; $10 C) an increase; $190 D) a decrease; $190

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A decrease in ________ decreases the demand for money

A) the discount rate B) real GDP C) the interest rate D) the quantity of money

Economics