Multiple Choice
Considering only the household sector, if household saving and taxes are less than spending from borrowing and transfers, then injections into the spending stream are:
A) less than leakages, and the level of economic activity will increase.
B) less than leakages, and the level of economic activity will decrease.
C) greater than leakages, and the level of economic activity will increase.
D) greater than leakages, and the level of economic activity will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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