Which one of the following statements is FALSE? (2)(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andspending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
Which one of the following statements is FALSE? (2)(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andspending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 1.4P
Related questions
Question
Which one of the following statements is FALSE? (2)
(a) There are four broad groups of decision‐making units in the economy:
households, firms, government and the foreign sector;
(b) Savings are an important injection into the circular flow of income and
spending in the economy;
(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;
(d) Spending by households on consumer goods and services is called
consumption spending.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you