In the Circular Flow of Income Model Injections into the Economy

question 9

Multiple Choice

In the circular flow of income model injections into the economy:

• A) Reduce aggregate demand.
• B) Are assumed not to be linked to the level of income.
• C) Represent money leaving the circular flow.
• D) Are a function of income.

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Definitions:

Preconscious

Refers to the thoughts, feelings, and memories that are not in immediate conscious awareness but can be easily accessed.

Superego

A component of Freud's psychoanalytic theory, representing the moralistic part of the mind that incorporates social standards and ideals.

Ego-ideal

A component of the psyche that represents an individual's standards of perfection and aspirations.

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id’s desires in realistic and socially appropriate ways.