In a 5 sector model if the sum of money flows into government, financial and overseas sector more then what flows out of them . What will be the Change in economy
3 answers
The economy would experience a net inflow of money, leading to an increase in overall economic activity and potentially higher levels of investment and economic growth. This could result in increased government spending, higher levels of investment in financial markets, and increased capital inflows from overseas. Overall, this could lead to a more robust and stable economy with higher levels of economic activity and potential for growth.
If sum of all flows into those 3 sectors are more then what flows out of them, precisely state the the change in economic activity
If the sum of money flows into the government, financial, and overseas sectors is greater than what flows out of them, it would indicate a net inflow of money into the economy. This would likely result in increased economic activity, as the additional funds could be used for investment, consumption, and other economic activities. Overall, the change in economic activity would likely be positive, leading to increased economic growth, higher levels of employment, and potentially lower levels of inflation.
7 answers