It is true that a stable economy occurs when
a. total injections into the circular flow are large enough to make up for government tax leakages.
b. total leakages from the circular flow are great enough to offset the effects of government spending.
c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow.
d. actual saving is equal to planned investment.
c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow.
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When the government's expenditures exceed its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) is balanced and the national debt is increasing. C) has a surplus and the national debt is increasing. D) has a deficit and the national debt is decreasing. E) None of the above because by law the government's expenditures cannot exceed its tax revenue.
In the long run, monopolistically competitive firms make zero economic profit because of
A) excess capacity. B) product variety. C) easy entry and exit. D) government regulation.
The largest expenditure component of U.S. GDP is:
A. consumption. B. investment. C. exports. D. government purchases.
What argument can you offer to justify the policy prohibiting formal voting during the Euro systems Governing Council meetings?
What will be an ideal response?