2.4.2 Injections and withdrawls

Question 1

what is an injection

Answer 1

an injection is a monetary addition to the economy

Question 2

what is a withdrawl, what is it otherwise known as

Answer 2

a withdrawl, otherwise known as a leakage, is where money is removed from the economy/ a monetary loss to the economy.

Question 3

what are the 3 leakages/withdrawls

Answer 3

-imports
-taxation
-savings

Question 4

what are the 3 injections

Answer 4

-government spending
-exports
-investment

Question 5

what are the impacts on the economy if leakages and withdrawls are balanced and unbalanced

Answer 5

-if unbalancedand leakagaes are greater than injections, then the economy will be shrinking

-if unbalanced and injections are greater than leakages then the economy will be growing

-if balanced then the economy will be in equilibrium