In terms of the UK circular flow of income, are the following net injections, net withdrawals or

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In terms of the UK circular flow of income, are the following net injections, net withdrawals or neither? If there is uncertainty, explain your assumptions.

(a) Firms are forced to take a cut in profits in order to give a pay rise.

(b) Firms spend money on research.

(c) The government increases personal tax allowances.

(d) The general public invests more money in building societies.

(e) UK investors earn higher dividends on overseas investments.

(f) The government purchases US military aircraft.

(g) People draw on their savings to finance holidays abroad.

(h) People draw on their savings to finance holidays in the UK.

(i) The government runs a budget deficit (spends more than it receives in tax revenues).

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Essential Economics For Business

ISBN: 9781292728940

7th Edition

Authors: John Sloman, Elizabeth Jones

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