Which of the Following Is True of Leakages and Injections

question 205

Multiple Choice

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

• A) Leakages minus injections equals gross domestic product (GDP).
• B) Injections minus leakages equals gross domestic product (GDP.
• C) Leakages minus injections equals 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.

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