Question 1
Which of the following is demonstrated by the circular flow diagram?
◦ One person's expenditure is someone else's receipt.
◦ Saving must always equal investment.
◦ Taxes must equal government expenditures.
◦ All of the above
Question 2
When withdrawals exceed injections, GDP will
◦ rise.
◦ fall.
◦ not change.
◦ accelerate.