Which of the Following Statements Is True Regarding Leakages and Injections

question 160

Multiple Choice

Which of the following statements is true regarding leakages and injections?

• A)Government transfer payments must equal taxes because one is a leakage and one is an injection.
• B)Imports must equal exports since both are leakages.
• C)Saving must equal investment for the economy to be in equilibrium.
• D)Since leakages equal injections,aggregate income equals aggregate expenditure.
• E)Net taxes are an injection into the circular flow; net exports are a leakage.

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Definitions:

Operational Definitions

Specific descriptions of concepts involving the criteria or operations used to measure them, making abstract ideas measurable and testable.

Anecdotal Evidence

Information based on personal accounts or individual cases rather than reliable research or systematic analysis.

Generalized

A concept or condition that is widespread, not limited to a specific case, group, or situation, often referring to a broad or overall view.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.