Leakages cause diversion of income from the domestic spending stream. TRUE OR FALSE
Leakages cause diversion of income from the domestic spending stream.
TRUE OR FALSE
Homework Answers
The given statement is TRUE.
Leakages cause diversion of income from the domestic spending stream. TRUE
Leakages includes savings, imports & taxation. The income from the system is removed due to leakages such as savings, imports & taxation. The non-consumption uses of income are known as leakages. For example, savings are leakages because the saved money cannot be spent in the economy & is kept as an idle asset with which no output can be purchased. So, savings leads to diversion of income from the domestic spending stream.
Add Answer to:
Leakages cause diversion of income from the domestic
spending stream.
TRUE OR FALSE
3. National accounting identities Let C stand for consumption spending, I for investment, G for government...
3. National accounting identities 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? O National income must equal domestic product. National income must equal the total amount of leakages from the nation's flow of income and...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for exports, S for saving, NT for net taxes (taxes minus transfer payments), and IM for imports. Consider the following identity and answer the questions that follow. I+ G+X = S+ NT + IM Which of the following best characterizes the above identity? The total amount of leakages from the nation's flow of income and expenditures must equal national income The total amount of leakages...
Let C stand for consumption spending, I for investment, G for government purchases, X for exports,...
Let C stand for consumption spending, I for investment, G for government purchases, X for exports, M 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-M)= DI + NT Which of the following best characterizes the above identity? Aggregate income must equal the total amount of leakages from the nation's flow of income and expenditures Domestic product must exceed aggregate income. O Aggregate income must equal domestic...
The net export function illustrates that:A) net exports are a positive function of domestic income....
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
Which of the following is true of trade diversion? A. It occurs when high-cost domestic producers...
Which of the following is true of trade diversion? A. It occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area B. it is the ultimate goal of most free trade agreements C. it occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area D. it leads to greater economic benefits than trade creation E. it occurs when lower-cost external suppliers are replaced by higher-cost external suppliers within the...
Reduced spending causes unemployment from staff reduction True or False points (8 01:17:11 True False
Reduced spending causes unemployment from staff reduction True or False points (8 01:17:11 True False
The Keynesian approach to fiscal policy assumes that changes in government spending cause direct offsets in...
The Keynesian approach to fiscal policy assumes that changes in government spending cause direct offsets in both consumption and investment spending. A. False B. True
Deficit spending will not cause much inflation if the economy is operating near full employment. a....
Deficit spending will not cause much inflation if the economy is operating near full employment. a. True b. False
Which of the following are leakages from the circular flow of income? Group of answer choices...
Which of the following are leakages from the circular flow of income? Group of answer choices Savings, taxes, and imports Investment, government purchases, and exports Investment, taxes and bonds Imports, wages and taxes
TRUE OR FALSE Government spending and aggregate demand are positively related. if government spending increases, aggregate...
TRUE OR FALSE Government spending and aggregate demand are positively related. if government spending increases, aggregate demand increases as well
3. National accounting identities 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? O National income must equal domestic product. National income must equal the total amount of leakages from the nation's flow of income and...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for exports, S for saving, NT for net taxes (taxes minus transfer payments), and IM for imports. Consider the following identity and answer the questions that follow. I+ G+X = S+ NT + IM Which of the following best characterizes the above identity? The total amount of leakages from the nation's flow of income and expenditures must equal national income The total amount of leakages...
Let C stand for consumption spending, I for investment, G for government purchases, X for exports, M 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-M)= DI + NT Which of the following best characterizes the above identity? Aggregate income must equal the total amount of leakages from the nation's flow of income and expenditures Domestic product must exceed aggregate income. O Aggregate income must equal domestic...
Reduced spending causes unemployment from staff reduction True or False points (8 01:17:11 True False
Most questions answered within 3 hours.
-
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 40 minutes ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 39 minutes ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 1 hour ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 1 hour ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 1 hour ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 1 hour ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 2 hours ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 2 hours ago -
The length of stay at a specific emergency department in
Phoenix, Arizona, in 2009 had a...
asked 1 hour ago -
. Please give the mechanism for this type of problem. Step by
Step
The toxin that...
asked 1 hour ago -
If you have a 1M stock solution and you want to dilute 1 :10
with water,...
asked 1 hour ago -
In a load instruction, the effective address is obtained by
A) Retriving the address from a...
asked 1 hour ago