With respect to the circular flow model of national income, which of the following statements is false? An increase in investment, a fall in taxes and an increase in exports increases economic activity A rise in savings, an increase in exports and a decrease in taxes increases economic activity A rise in government spending, a fall in imports and an increase in investment increases economic activity A rise in exports, a fall in savings and an increase in transfer payments increases econômic activity

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter2: International Flow Of Funds
Section: Chapter Questions
Problem 7QA
icon
Related questions
Question
With respect to the circular flow model of national income, which of the following statements is false?
An increase in investment, a fall in taxes and an increase in exports increases economic activity
OA rise in savings, an increase in exports and a decrease in taxes increases economic activity
OA rise in government spending, a fall in imports and an increase in investment increases economic activity
K A rise in exports, a fall in savings and an increase in transfer payments increases economic activity
Transcribed Image Text:With respect to the circular flow model of national income, which of the following statements is false? An increase in investment, a fall in taxes and an increase in exports increases economic activity OA rise in savings, an increase in exports and a decrease in taxes increases economic activity OA rise in government spending, a fall in imports and an increase in investment increases economic activity K A rise in exports, a fall in savings and an increase in transfer payments increases economic activity
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
International Financial Management
International Financial Management
Finance
ISBN:
9780357130698
Author:
Madura
Publisher:
Cengage