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

question 88

Multiple Choice

The figure given below represents the leakages and injections in an economy. Figure 10.3 In the figure:
S₁ and S₂: Saving functions
I: Investment
G: Government spending
EX: Net exports
Refer to Figure 10.3.If saving is represented by S₁, at a real GDP level of $500:

• A)leakages are greater than injections which will cause income to increase.
• B)leakages are greater than injections which will cause income to decrease.
• C)leakages are less than injections which will cause income to increase.
• D)leakages are less than injections which will cause income to decrease.
• E)leakages are equal to injections which will cause no change in income.

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Definitions:

Continuum Models

Theoretical models that describe certain properties or behaviors as occurring on a continuous scale, rather than being divided into distinct categories.

Structured Interview

Meeting between a clinician and a client or a client’s associate(s) in which the clinician asks questions that are standardized and are usually designed to determine whether a diagnosis is warranted.

Behavioral Observation

Method for assessing the frequency of a client’s behaviors and the specific situations in which they occur.

Projective Test

Presentation of an ambiguous stimulus, such as an inkblot, to a client, who then projects unconscious motives and issues onto the stimulus in his or her interpretation of its content.