2.4.2 Injections and withdrawals Flashcards
1
Q
What is an injection?
A
It is money which enters the economy.
2
Q
What are the main injections?
A
- Government spending (G)
- Investment (I)
- Exports (X)
3
Q
What is a withdrawal?
A
It is money which leaves the economy.
4
Q
What are the main withdrawals?
A
- Taxes (T)
- Savings (S)
- Imports (M)
5
Q
If the sum of injections is greater than the sum of withdrawals, then the economy will be…
A
growing
6
Q
if injections are smaller than withdrawals, it will be…
A
shrinking
7
Q
In an equilibrium, injections must be … to withdrawals and so the national income remains the same.
A
equal
