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

question 2

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.The paradox of thrift might not be a problem if:

• A)the average price level does not change in the short run.
• B)the I + G + EX line were downward-sloping.
• C)the I + G + EX line were constant at an intercept of $30.
• D)the increase in saving was used to fund investment expenditures.
• E)the I + G + EX line were constant at an intercept of $50.

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Definitions:

Power and Authority

Relates to the capacity of a person or organization to direct or influence the behavior of others or the course of events.

Informal Code

Unwritten rules or norms that guide behavior within a group or organization, often shaping the culture and interactions more subtly than formal policies.

Silence

The absence of expressed opinions, responses, or noises, which can be a powerful communication tool or a form of non-participation.

Police Officers

Law enforcement officials responsible for maintaining public order, preventing and investigating crimes, and enforcing laws.