QUESTION 7 1 points Which of the following is an example of a leakage from the c

Question

QUESTION 7 1 points Which of the following is an example of a leakage from the circular flow of income and expenditure? a. Imports b.Government purchases Oc. Exports d. Investment e. Transfer payments QUESTION 8 The American Recovery and Reinvestment Act, signed by President Barack Obama in 2009, aimed at: O a stimulating the aggregate demand in the economy. benefits to the residents of the economy b, providing higher c. closing an expansionary gap through a contractionary fiscal policy. Od ensuring free trade flows across the world. 0 removing the supply bottlenecks in the economy. QUESTION 9 A family with an income of $25,000 pays $3,000 in taxes per year, and a in taxes per year. The tax plan is: family with an income of SS0,000 pays $4,000 a regressive for income levels between$25,000 and $50,000. b.proportional for income levels between $25,000 and $50,000. c. proportional for income levels above $50,000. d.progressive for all income levels below $25,000. e. based on the benefits-received principle. Click Save and Submit to save and submit. Click Save All Answers to save all

Explanation / Answer

7) imports

Imports are the leakage as it reduces the money in the country.

8) stimulating the aggregate demand

To recover from the economic downturn, the act was implemented to get the economy of recession by increasing aggregate demand.

9) b proportional to income levels between 25000 to 50000

Higher income earning person gives higher tax than lower income earning person. Therefore tax amount increases with increase in income.

10) d decrease in cost of fertilizer of tomato plant.

Fertilizer is the cost of production of tomatoes. Decrease in the cost of production increases the supply.

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