! 1. In the circular flow model, a state of equilibrium is reached when:A) savings are equal to investment.B) government spending is equal to taxation.C) imports are equal to exports.D) total injections are equal to total withdrawals.E) production is equal to expenditure is equal to income.2. If autonomous expenditure remains constant, and there is a decrease in theproportion of aggregate disposable income consumed in theeconomy,then....A) equilibrium income will be reduced and the multiplier will be increased.B) equilibrium income will be increased. and the multiplier will be increased.C) equilibrium income will be reduced and the multiplier will be reduced.D) equilibrium income will be increased and the multiplier will be reduced.E) equilibrium income will be increased and the multiplier will remain unchanged.

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Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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1. In the circular flow model, a state of equilibrium is reached when: A) savings are equal to investment. B) government spending is equal to taxation. C) imports are equal to exports. D) total injections are equal to total withdrawals. E) production is equal to expenditure is equal to income.