2.4.2: Injections & Withdrawals Flashcards
1
Q
What are injections?
A
Monetary additions to an economy.
2
Q
What are withdrawals?
A
When money is removed from an economy.
3
Q
What are the three injections?
A
-Government expenditure (G).
-Investment (I).
-Exports (X).
4
Q
What are the three withdrawals?
A
-Taxes (T).
-Savings (S).
-Imports (M).
5
Q
Injections > Withdrawals =
A
Economic growth.
6
Q
Injections < Withdrawals =
A
Economic decline.
7
Q
Injections = Withdrawals =
A
Equilibrium.
8
Q
What is the economic equilibrium equation?
A
G + I + X = T + S + M
