Distinguish Between Withdrawals And Injection Expenditure In The Economy By The Government. What Happens When Withdrawals Are Bigger Or Smaller Than Injections?


2 Answers

sajjad haider Profile
sajjad haider answered
Well withdrawals are items or services that are taken out of the economy and do not contribute to it for example imports whereas injections are  items or activities that bring money or growth in the economy for example exports. When withdrawals are bigger then injections this could lead to negative economic growth and budget deficit. Furthermore if they are less then injections then the country would be facing a budget surplus and increased economic growth. Hope this answers the question.
Anonymous Profile
Anonymous answered
Withdrawals take money out of the system whereas injections create more goods and services thereby if withdrawals are bigger that injections  It is a contractionary measure to remove money from the economy.  In doing so it is a measure to curb spending and curb inflation.

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