Which of the following are changes in injections into, and which are changes in withdrawals from the UK’s circular flow of income? In each case, identify whether the change is an increase or a decrease. In each case, assume that this is the only change. (Delete wrong words.)
Which of the following are changes in injections into, and which are changes in withdrawals from the UK’s circular flow of income? In each case, identify whether the change is an increase or a decrease. In each case, assume that this is the only change. (Delete wrong words.)
(a) A council funds the building of new libraries. Withdrawal/Injection Increase/Decrease
(b) The government raises tax-free thresholds. Withdrawal/Injection Increase/Decrease
(c) The government reduces child benefit. Withdrawal/Injection Increase/Decrease
(d) Fewer tourists visit the UK. Withdrawal/Injection Increase/Decrease
(e) Firms, anticipating a rise in consumer demand, borrow more money in order to build up their stocks. Withdrawal/Injection Increase/Decrease
(f) Consumers demand more goods than are domestically produced (but total consumption does not change). Withdrawal/Injection Increase/Decrease
(g) People invest more money in banks and building societies.
Withdrawal/Injection Increase/Decrease
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