2.4.2 - Injections and withdrawals

• Injections are monetary additions to the economy:

  • government spending (G)
  • investment (I)
  • exports (X)
• Withdrawals or leakages are where money is removed from the economy:

  • taxes (T)
  • savings (S)
  • imports (M)
• If the sum of injections is greater than the sum of leakages/withdrawals, then the economy will be growing
• If injections are smaller than withdrawals, it will be shrinking