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The Figure Given Below Represents the Leakages and Injections in an Economy

Question 25

Multiple Choice

The figure given below represents the leakages and injections in an economy. Figure 10.2 The figure given below represents the leakages and injections in an economy. Figure 10.2 In the figure: I, I<sub>1</sub>: Investment; G: Government spending; EX, EX<sub>1</sub>: Exports; T: Taxes;and M: Imports. Refer to Figure 10.2.A decline in total injections by $10: A) will cause equilibrium income to rise to $400. B) will result in a disequilibrium of $200 in the economy. C) will cause the total leakages curve to shift inward by $10. D) will cause equilibrium income to fall to $300. E) will not affect equilibrium income. In the figure:
I, I1: Investment;
G: Government spending;
EX, EX1: Exports;
T: Taxes;and
M: Imports.
Refer to Figure 10.2.A decline in total injections by $10:


A) will cause equilibrium income to rise to $400.
B) will result in a disequilibrium of $200 in the economy.
C) will cause the total leakages curve to shift inward by $10.
D) will cause equilibrium income to fall to $300.
E) will not affect equilibrium income.

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