alleryStart learning →In the five-sector model, equilibrium occurs when total leakages are:
AEqual to total injections
BDouble the total injections
CHalf the total injections
DGreater than total injections
Answer & Solution
Correct answer: A. Equal to total injections
With S + T + M equal to I + G + X, the income flow neither grows nor shrinks, so the economy is stable.
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