Calculate the total leakage if:

Question

Consumer expenditure -70
Investment expenditure-20
Government expenditure -35
Export -20
Import-30

Answer 1

Total leakage = Saving + Taxes + Imports
Saving= (Consumer expenditure + Investment expenditure + Government expenditure) - (Consumer expenditure + Investment expenditure)

= (70 + 20 + 35) - (70 + 20)
= 125 - 90
= 35

Taxes= Government Expenditure
= 35

Imports= 30

Total Leakage= Saving + Taxes + Imports
= 35 + 35 + 30
= 100

Therefore, the total leakage is 100.