Which of the following statements is FALSE?
A) Foreign purchases of U.S.-produced goods cause an injection into the U.S. economy.
B) Purchases by U.S. buyers of foreign-produced goods cause a leakage from the U.S. economy.
C) U.S. purchases of foreign-produced goods increase output and employment in foreign countries.
D) If the value of exports exceeds the value of imports, leakages from the foreign sector exceed injections.
Correct Answer:
Verified
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