In the circular flow of income and spending, that is, the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors... 1. Exports are leakage from the circular flow 2. Savings are injections into the circular flow 3. Imports are injections into the circular flow 4. Taxes are leakages from the circular flow
In the circular flow of income and spending, that is, the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors... 1. Exports are leakage from the circular flow 2. Savings are injections into the circular flow 3. Imports are injections into the circular flow 4. Taxes are leakages from the circular flow
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 1CQQ
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![In the circular flow of income and
spending, that is, the basic flow of
income and spending between
households and firms
supplemented by the foreign,
financial and government
sectors...
1. Exports are leakage from the
circular flow
2. Savings are injections into the
circular flow
3. Imports are injections into the
circular flow
4. Taxes are leakages from the
circular flow](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d7a4480-2067-448d-b6f9-c563e46dd780%2Fd70d711c-54b1-4c7d-923e-3cccc5fd0ca2%2Ftcguqms_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the circular flow of income and
spending, that is, the basic flow of
income and spending between
households and firms
supplemented by the foreign,
financial and government
sectors...
1. Exports are leakage from the
circular flow
2. Savings are injections into the
circular flow
3. Imports are injections into the
circular flow
4. Taxes are leakages from the
circular flow
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