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:

Major Life Events

Significant occurrences in a person's life that have the capacity to alter the course of life significantly, often requiring considerable adjustment.

Catastrophes

Extreme and sudden disasters or events causing significant damage or suffering.

Hassles

Hassles are minor irritations or annoyances that individuals encounter in everyday life, which can accumulate and contribute to overall stress.

Eustress

Positive stress that has beneficial effects on health, motivation, performance, and emotional well-being.