Answer to Question #133203 in Macroeconomics for Melissa

Question

Q.1.2 Which one of the following statements is FALSE?

(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.

Answer 1

b is false