The Figure Given Below Represents the Leakages and Injections in an Economy

question 25

Multiple Choice

The figure given below represents the leakages and injections in an economy. Figure 10.2 In the figure:
I, I₁: Investment;
G: Government spending;
EX, EX₁: Exports;
T: Taxes;and
M: Imports.
Refer to Figure 10.2.A decline in total injections by $10:

• A)will cause equilibrium income to rise to $400.
• B)will result in a disequilibrium of $200 in the economy.
• C)will cause the total leakages curve to shift inward by $10.
• D)will cause equilibrium income to fall to $300.
• E)will not affect equilibrium income.

---

Definitions:

Judgment Creditors

Individuals or entities entitled to collect a financial judgment from a debtor following a court ruling.

Federal Taxation

The process through which the national government of a country collects taxes from individuals and businesses.

Civil Litigation

A legal process where parties in dispute come before a court for the resolution of a matter, usually involving private rights and remedies.

Attention to Detail

The meticulous and careful consideration of all aspects and fine points of a task or situation.