Saving: Investment in a circular flow

Related BrainMass Solutions

• Circular Flow and Supply and Demand

  In a simple economy, then, we would expect equilibrium, meaning that funds flow in and the goods flow out without any "backlogs." However, in a real economy we have two paths from consumers to the product market.

• Injection-leakage model

  In order to see this, we can look at the closed economy without government. Make use of income identity, we can see that saving is always equal to investment, whereby saving is a leakage and investment is an injection.

• In the circular flow model of the economy, what are the "leakages" and "injections" (please define, also)?

  In the circular flow model of the economy, what are the "leakages?" Define them. 2. In the circular flow model of the economy, what are the "injections?" Define them. 3.

• Production Possibilities Curve, Economic System

  Drastic spending cuts in government spending mean there is a reduction in the injection by the government. In circular flow terminology, government spending is called injection.

• Recession and expansion

  In terms of the 5 sector circular flow of income model the state of equilibrium occurs when the total leakages are equal to the total injections that occur in the economy.

• Macroecomics Questions

  The investment multiplier e. The government budget deficit f. The leakages from and injections in to the circular flow of income and expenditure. Do leakages equal injections?

• Capital Budgeting, NPV

  King, would you go ahead with this capital investment? f. How sensitive to fuel prices is this capital investment? a.

• Capital Budgeting-proposed acquisition of a new truck

  What is the net investment in the truck? (That is, what is the Year 0 net cash flow?) A) -$50,000 B) -$52,600 C) -$55,800 D) -$62,000 E) -$65,000 B- Refer to New Truck. What is the operating cash flow in Year 1?

• too little saving and consequently too little investment

  UK is not suffering from too little saving and too little investment.