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Is saving an injection into and investment a leakage from the income expenditure stream?
Wiki User
∙ 15y ago
Savings are a leakage from the income expenditure stream because they drain on the economy
Wiki User
∙ 15y ago
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Why is planned investment called an injection?
Planned investment is called an injection because it refers to new spending or investment that is added to the circular flow of income and expenditure in an economy. It injects additional income and spending into the economy, stimulating economic activity and potentially increasing aggregate demand. In contrast, unplanned changes in inventory levels are called leakages because they remove income and spending from the circular flow.
What are the injection into the circular flow of income?
injections into the circular flow of income are basically household consumers' net savings, net taxes and import expenditure. net savings from household consumers goes to the banks which in turn uses the money for investment expenditure(withdrawals) net taxes, goes to the govt which in turn uses it for government expenditure.(withdrawals) import expenditure goes abroad, and in turn uses it for export expenditure. Y= C + I + G + ( X-M)
Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
What do you mean by income over expenditure or expenditure over income?
income over expenditure is profitexpenditure over income is loss
What is the concept of Multiplier?
The concept of Multiplier highlights the effects of initial investment upon national income through changes in consumption expenditure.
How much tax will there be if there are 429.99?
The tax rate varies from region to region and also usually depends on whether the amount involved (429.99) is an expenditure, earned income, investment income.
What is the difference between income and expenditure incurred?
Inflow of money is income . Outflow of money is expenditure
What is between revenue and expenditure?
revenue is income and expenditure is an expense
Name two non-income determinants of Consumption?
There are following non-income determinants 1.wealth 2.Expenditure 3.Investment 4.House-hold debts 5.Interest rate
What is income expenditure?
A statement that records the income and expenditure of an organization such as a charity,whose main purpose is not the generation of profit.
What is the difference between capital income and capital expenditure?
Income is money coming in, expenditure is money going out (spending).
Is it true for an economy as a whole. income equals expenditure because the income of the seller must be equal to the expenditure of the buyer?
Yes
