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planned investment is an injection because it is spending on capital goods that businesses plan to make regardless of their current level of income
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∙ 14y ago
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.
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Total capital investment for starting clothing boutique?
Total Liabilities, $90,000. Capital. Planned Investment. Owner Injection, $41,707.
Why must saving equal planned investment at equilibrium GDP in the private closed economy?
Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.
How investment is carefully planned and well grounded speculation?
"speculation" and "planned investment" are not harmonious bedfellows.
What are some examples of planned inventory investment?
An example of a planned inventory investment might be the purchase of inventory at a reduced price to gain a larger profit margin. Another example of a planned inventory investment might be the purchase of shelving or another cash register.
Is it equilibrium when savings equals planned investment?
yes, because unplanned investment equals zero
Actual investment and planned investment?
It's pretty much as it sounds. Planned investment is how much a person/company plans to invest over a period of time (usually a year) and the actual investment is the amount what they didinvest.For help with any future investment http://investorbee.com is a good place to go to get factual data guiding you to make informed decisions.
Consequences of planned savings being greater than planned investment on income?
the economy will contract, total income and output decreases and may be the begining of a recession.
What term do they use when an injection right into the muscle?
An injection into muscle is called 'an intramuscular injection.'
Why is it called airless injection in relation to compression ignition engine?
Airless injection or solid injection - Injection of fuel directly inti the combustion chamber without primary atomisation is called airless injection. it is nothing but mechanical injection only.
The amount of an original investment is called?
the amount of an original investment is called
What is injection directly into a vein called?
Intravenous injection or therapy.
Why is an injection under the skin to a large extent an injection to the lymphatic system?
an injection under the skin is called a sucutaneous injection.
