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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

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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 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 is meant by withdrawals and injections?

Withdrawals and injections are terms used in economics to describe the flow of money in and out of an economy. Withdrawals refer to money that leaves the economic system, such as savings, taxes, or imports, which can reduce overall economic activity. Injections, on the other hand, are funds that enter the economy, including investments, government spending, and exports, which can stimulate growth. The balance between withdrawals and injections is crucial for maintaining economic stability.


When withdrawals exceed injections national income will do what?

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.


With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?

When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace

Related Questions

What hapeens when withdrawals are bigger or smaller than injections?

When withdrawals are larger than injections in an economic context, it typically leads to a decrease in the money supply, which can result in reduced spending and slower economic growth. Conversely, if injections exceed withdrawals, the money supply increases, potentially stimulating economic activity and growth. This imbalance can affect liquidity, investment, and overall economic stability, necessitating adjustments by policymakers to maintain equilibrium.


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 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!!


When withdrawals exceed injections national income will do what?

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.


With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?

When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace


How do injections and withdrawals affect the size of the circular flows of income and expenditure in an economy?

Ffff


With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals?

im not too sure if im correct but injections exceeding withdrawals mean inflation increases as theres TOO MANY PEOPLE AND MONEY CHASING TOO FEW GOODS....this means that producers will increase the price of the good so that they will be able to bring demand to an equilibrium point... because inflation has increased the monetary committee will increase interest rates thus causing unemployment to increase as producers will not be able to pay wages ......... or something like that ONCE AGAIN IM NOT COMPLETELY SURE IF IM RITE


How do injections and withdrawals effect economic activity?

Injections include Export revenue, Investment and Government expenditure. Withdrawals include Saving, Tax, Import expenditure. All of it affects the component of Aggregate Demand hence affects the economic activity. For e.g. High savings would mean low consumption. This would cause some firms to make losses and leave the industry etc.


Export means outflow of goods and services whereas import is inflow of goods and services That's why export is a component of withdrawals whereas import is a component of injections?

tae!! haha :P


What are the injections in macroeconomics?

In macroeconomics, injections refer to the addition of spending into the economy that boosts aggregate demand. Key components include investments (business spending on capital), government spending (public expenditures on goods and services), and exports (sales of goods and services to foreign markets). These injections counterbalance withdrawals, such as savings, taxes, and imports, helping to maintain economic equilibrium and stimulate growth.


What happens when you exceed your heartrate?

The heart COULD go into fribbrilation.


What happens to aggregate income and withdrawals when exports increase?

there is no answer hahahaha / oh very intelligent - well done !!

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