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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.
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
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 impact of Injections into the spending stream?
The impact of injections into the spending stream is that injections add to main income spending stream in economy . Often times , people think of government spending as an injection , but that is misleading . For the government to ''inject'' into the spending stream , it must first take something from it . As you would if you were to donate blood . Your blood cannot be donated to another body if it has not yet been taken from you . Injections are an addition to the income of firms which do not normally arise from the expenditure of households e.g. changes in investment , government spending or exports .
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 two actions could you take if your expenditures were greater than your income?
If your expenditures exceed your income, you could first evaluate and reduce discretionary spending, such as dining out or entertainment, to free up funds. Additionally, consider seeking ways to increase your income, such as taking on a part-time job or freelance work. Implementing a strict budget can also help you track and manage your finances more effectively.
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 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.
