The Equilibrium Level of National Income in the Economy Is

question 9

Multiple Choice

The equilibrium level of national income in the economy is where _______________.

• A)the ratio of leakages to savings = the ratio of injection to consumption
• B)leakages = injections
• C)leakages + injections = consumption + investment
• D)consumption - investment = zero

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Definitions:

Impairment

The reduction in the recoverable value of a fixed asset or goodwill below its book value on the balance sheet, often leading to an expense in the income statement.

Retained Earnings

Accumulated net income that has been retained by a company rather than distributed to its owners as dividends.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interest in the company.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without adjusting for changes in market value.