In australian circular flow of income, Are the following net injections, net withdrawals or neither? 1. Firms are forced to take a cut in profits to give a pay rise 2. Firms spend money on research 3. The government increases tax free threshhold

In australian circular flow of income, Are the following net injections, net withdrawals or neither? 1. Firms are forced to take a cut in profits to give a pay rise 2. Firms spend money on research 3. The government increases tax free threshhold

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 9PA

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Question

In australian circular flow of income, Are the following net injections, net withdrawals or neither?

1. Firms are forced to take a cut in profits to give a pay rise

2. Firms spend money on research

3. The government increases tax free threshhold

4. The general public spend more money in credit unions

5. Australian investors earn higher dividends on overseas invetments

6. The government purchases US military aircrafts

7. People draw on their savings to finance holiday overseas

8. people draw on their savings to finance holidays in Australia

9. The government runs a budget deficit and finance it by borrowing from general public

10. The government runs a budget deficit and finance it by priniting more money

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