The Figure Given Below Represents the Leakages and Injections in an Economy.?Figure

question 121

Multiple Choice

The figure given below represents the leakages and injections in an economy.?Figure 10.3??In the figure:?S₁ and S₂: Saving functions?I: Investment?G: Government spending?EX: Net exports

-Refer to Figure 10.3. If saving is represented by S₁, at a real GDP level of $500:

• A) leakages are greater than injections which will cause income to increase.
• B) leakages are greater than injections which will cause income to decrease.
• C) leakages are less than injections which will cause income to increase.
• D) leakages are less than injections which will cause income to decrease.
• E) leakages are equal to injections which will cause no change in income.

---

Definitions:

Suburbanization

describes the process in which residential areas develop outside of city centers, often characterized by lower density, single-family homes, and reliance on automobile transport.

Inner-City Neighborhoods

Typically refers to the more central, often older and more densely populated areas of a city, which may face economic, social, and infrastructural challenges.

Federal Research Grants

Financial funding provided by the federal government to support research projects in areas like science, technology, education, and health.