Th2.4: Injections and Withdrawals Flashcards
1
Q
What are injections?
A
monetary additions to the economy
2
Q
What are the three injections?
A
Government spending
Investment
Exports
3
Q
What are withdrawals / leakages?
A
where money is removed from the economy
4
Q
What are the three withdrawals?
A
Savings
Imports
Taxes
5
Q
If the sum of injections is greater than the sum of leakages, then…
A
the economy will be growing
6
Q
If the sum of leakages is greater than the sum of injections, then…
A
the economy is shrinking
7
Q
When would the national income remain the same?
A
in an equilibrium, when injections are equal to withdrawals
