Total injection are made up of?
Correct answer: D. investment + government expenditure + exports
- A. investment + tax + exports
- B. savings + government expenditure + exports
- C. investment + government expenditure + imports
- D. investment + government expenditure + exports
Explanation
Injections add spending to the circular flow and consist of investment, government expenditure and exports, written as I + G + X. Savings, taxes and imports are leakages.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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