The economy will expand if
A)leakages exceed injections
B)injections exceed leakages
C)leakages equal injections
D)expenditures are less than output
E)saving exceeds investment

Question

Quizplus · Accepted Answer

Injections, which include government spending, investment, and exports, are a boost to the economy because they inject money into the system. If injections exceed leakages, which include savings, taxes, and imports, then there will be more money circulating in the economy, leading to an expansion.

The Economy Will Expand If