Injections and Withdrawals Flashcards
1
Q
What qualifies as Injections (J)
A
Investment on capital goods
Exports
Government spending
2
Q
What qualifies as leakages
A
Savings
Imports
Taxation
3
Q
What happens when incomes > leakages
A
National Income will rise
4
Q
What happens when income < leakages
A
National income will contract