Which of the Following Is True of Leakages and Injections

question 14

Multiple Choice

Which of the following is true of leakages and injections in the circular flow model?

• A)Leakages minus injections equal gross domestic product (GDP).
• B)Injections minus leakages equal gross domestic product (GDP).
• C)Leakages minus injections equal zero in equilibrium.
• D)Leakages must be less than injections for an economy to be in equilibrium.
• E)Leakages must be greater than injections for an economy to be growing.

---

Definitions:

Proposition

A statement or assertion that expresses a judgment or opinion, or in logic, a declarative sentence that is either true or false.

Truth

Truth refers to the state or quality of being in accordance with fact or reality.

Ad Hominem Fallacy

A fallacy in reasoning where the argument is directed against a person rather than the position they are maintaining.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and integrity.