net taxes. consumption spending, Consider the following identity and answer the questions that follow. C+I+G+ (X-IM) = DI + NT Which of the following best characterizes the above identity? vestment, for governme National income must equal domestic product. Domestic product must exceed national income. True or False: Imports must equal exports. True Domestic product must equal the total amount of leakages from the nation's flow of income and expenditures. Domestic product must equal the total amount of injections into the nation's flow of income and expenditures. False purchases, x for exports, Imports, DI for disposable income, and NI
net taxes. consumption spending, Consider the following identity and answer the questions that follow. C+I+G+ (X-IM) = DI + NT Which of the following best characterizes the above identity? vestment, for governme National income must equal domestic product. Domestic product must exceed national income. True or False: Imports must equal exports. True Domestic product must equal the total amount of leakages from the nation's flow of income and expenditures. Domestic product must equal the total amount of injections into the nation's flow of income and expenditures. False purchases, x for exports, Imports, DI for disposable income, and NI
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for
net taxes.
Consider the following identity and answer the questions that follow.
C+I+G+(X-IM) = DI + NT
Which of the following best characterizes the above identity?
National income must equal domestic product.
Domestic product must exceed national income.
Domestic product must equal the total amount of leakages from the nation's flow of income and expenditures.
Domestic product must equal the total amount of injections into the nation's flow of income and expenditures.
True or False: Imports must equal exports.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4671d52d-051f-4eda-be7d-1bf70b224674%2Fe1374672-9f42-4049-9382-96c8d313cce1%2Fmb21pz_processed.png&w=3840&q=75)
Transcribed Image Text:Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for
net taxes.
Consider the following identity and answer the questions that follow.
C+I+G+(X-IM) = DI + NT
Which of the following best characterizes the above identity?
National income must equal domestic product.
Domestic product must exceed national income.
Domestic product must equal the total amount of leakages from the nation's flow of income and expenditures.
Domestic product must equal the total amount of injections into the nation's flow of income and expenditures.
True or False: Imports must equal exports.
True
False
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