The figures in the table below represent the only income payments received by households. Rent Wages Interest
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The figures in the table below represent the only income payments received by households.
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Rent Wages Interest and profit £bn 5 75 20 Assume that there are injections into and withdrawals from the circular flow. Investment is £10 billion, government spending £20 billion and exports £30 billion. Savings are £15 billion, and taxes are £15 billion. (i) What must be the equilibrium level of imports? (ii) Calculate household domestic consumption. (4 marks) Rent Wages Interest and profit £bn 5 75 20 Assume that there are injections into and withdrawals from the circular flow. Investment is £10 billion, government spending £20 billion and exports £30 billion. Savings are £15 billion, and taxes are £15 billion. (i) What must be the equilibrium level of imports? (ii) Calculate household domestic consumption. (4 marks)
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To determine the equilibrium level of imports we need to consider the injections and withdrawals fro... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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