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When withdrawals exceed injections national income will do what?
Wiki User
∙ 14y ago
When planned withdrawals are more than planned injections, there is too little aggregate demand. I'm no economics expert so i don't know whether this would lead to a downward mutipler or a negative accelerator effect. Withdrawals are savings, taxes and imports and it seems to me that if savings increase, there would be a negative accelerator effect, but if imports increase, there would be a downward multiplier, but don't take my word for it.
Wiki User
∙ 14y ago
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What happens if withdrawals exceed injections?
When withdrawals exeed injections, AD is too low. The paradox of thrift suggests that if households increase their savings, they may not be saving at all due to the following downward multiplier, which reduces their national income, usually in a two sector economy
How do injections and withdrawals affect the size of the circular flows of income and expenditure in an economy?
Ffff
Distinguish between withdrawals and injection expenditure in the economy by the Government?
withdrawals and injections are both a part of the circular flow of income. Injections are things that are providing finance or services into the economy for example exports. Withdrawals on the other hand are the things that are being taken out of the economy such as imports. If withdrawals are bigger then injections the country would be facing a deficit and negative economic growth. If withdrawals are less then injections then a country would be facing a budget surplus and economic growth.
What is an IS curve?
It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.
What happens in the economic growth full employment internal price stability income distribution and poverty alleviation when the withdrawals exceed injections?
assignment is due on Tuesday :P HAHAHA! IMM students hey? Dont worry I was also looking for the answer!!! Good luck, Tuesday is Dday!!
What happens if withdrawals exceed injections?
When withdrawals exeed injections, AD is too low. The paradox of thrift suggests that if households increase their savings, they may not be saving at all due to the following downward multiplier, which reduces their national income, usually in a two sector economy
How do injections and withdrawals affect the size of the circular flows of income and expenditure in an economy?
Ffff
Distinguish between withdrawals and injection expenditure in the economy by the Government?
withdrawals and injections are both a part of the circular flow of income. Injections are things that are providing finance or services into the economy for example exports. Withdrawals on the other hand are the things that are being taken out of the economy such as imports. If withdrawals are bigger then injections the country would be facing a deficit and negative economic growth. If withdrawals are less then injections then a country would be facing a budget surplus and economic growth.
What is IS curve?
It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.
What is an IS curve?
It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.
What happens in the economic growth full employment internal price stability income distribution and poverty alleviation when the withdrawals exceed injections?
assignment is due on Tuesday :P HAHAHA! IMM students hey? Dont worry I was also looking for the answer!!! Good luck, Tuesday is Dday!!
National income withdrawls and injections?
withdrawls from economy include savings, taxes and imports and injections comprise of exports
What is the difference between a RRSP and a RRIF?
an rrsp withdrawals do NOT qualify as a pension income. the RRIF withdrawals do qualify as pension income.
Is IRA reciepts earned income?
Withdrawals from a traditional IRA are considered taxable income. You do not have to pay tax on withdrawals from a Roth IRA.
What type of accounts would not be presented on an income statement?
Withdrawals
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 money from 401k considered income for the year?
Withdrawals from 401k accounts are added to your general income for that tax year.
