In an Open Economy,injections and Leakages Are Related As

question 84

Multiple Choice

In an open economy,injections and leakages are related as:

• A)I + G = S + T.
• B)I + G + X = S + T + M.
• C)X + G = T + M.
• D)none of the above

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Definitions:

Adam Smith

Known as the father of modern economics, he was an 18th-century philosopher best known for his theories on free market economics and the invisible hand concept.

Self-Interest

What is in the best interest of and benefit to an individual.

Social Exchange

A concept describing how social stability and change occur through the process of transactions agreed upon by individuals or groups.

Calculated Involvements

Engagements or commitments that are made after careful consideration and planning to achieve specific outcomes.