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Which of the Following Is True of Leakages and Injections

Question 14

Multiple Choice

Which of the following is true of leakages and injections in the circular flow model?


A) Leakages minus injections equal gross domestic product (GDP) .
B) Injections minus leakages equal gross domestic product (GDP) .
C) Leakages minus injections equal zero in equilibrium.
D) Leakages must be less than injections for an economy to be in equilibrium.
E) Leakages must be greater than injections for an economy to be growing.

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