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Why an economy's income must equal its expenditures?

Because every dollar of spending by a buyer is a dollar of income for a seller


What Factors affect consumer spending?

The factors that affect consumer spending are: Size of Income, Future Expenditures, and Social Influences.


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 is balanced budget?

A budget for which expenditures are equal to income. Sometimes a budget for which expenditures are less than income is also considered balanced. The concept is often discussed in reference to the federal government.


What are spending lekages and injections?

Spending leakages and injections refers to the income generated in production that does not completely return to the product markets in form of consumer spending. The macroeconomic model balances the non-consumption expenditures on the injections and the non-consumption uses of the leakages.


The excess of income over expenditures is called?

The excess of income over expenditures is known as Savings. S= Y(d)-C Where; S= Savings Y(d)= Disposable Income C= Consumption Expenditures


How much will a trustee take out of your monthly income in a chapter 13 bankruptcy Is it a certain percentage?

It's your disposable income. The debtor files a statement of income and expenditures. The expenditures cannot be unreasonably high. The chapter 13 payment is the difference between the income and expenditures.


What is a balanced budget?

The oversight committee has been working on the next balanced budget for over three weeks.


What is induced investment?

Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures.


What is the Percent of income breakdown on expenditures?

10 percent


What is required of Congress to publish a statement of all expenditures and income?

Reports of the living costs, non-priority debts, priority debts and income are required of the Congress to publish a statement of all expenditures and income.


What is autonomous spending?

Autonomous spending refers to the level of spending that occurs regardless of an economy's current income level or output. This type of spending is driven by factors such as consumer confidence, government expenditures, and essential consumption needs, rather than by changes in income or economic conditions. It plays a crucial role in economic models, as it helps to determine the baseline level of demand within an economy. Examples include basic necessities like food and housing, as well as government spending on infrastructure.