Which statement concerning the circular flow of income is correct?
- AExports and imports do not affect the equilibrium level of national income because they always cancel each other out.
- BThe greater the level of saving, the greater the level of injections in the form of investment must be.
- CWhen consumers use past savings to increase their spending, there will be a rise in national income.
- DWhen a government increases withdrawals by increasing the rate of income tax, there must be an equivalent increase in injections to compensate.