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Jordan
Jordan asked in Social ScienceEconomics · 7 years ago

Circular flow of income Australia purchases U.S Military aircraft: net injection, withdrawal or neither?

So I'm doing an assignment and am have a bit of trouble with a question...In terms of the Australia circular flow of income if the Australian government were to purchase US Military aircraft would if be a new injection,withdrawal or neither?

For some reason i keep going to neither because the money is going outside of the Australian economy, withdrawal crossed my mind but i keep thinking that a withdrawal would be some kind of investment where you are expecting a return/injection back into the Australia economy?

Would appreciate if someone could help explain or share their thoughts on it.

1 Answer

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  • The Final Weapon
    Lv 7
    7 years ago

    "He became a Heartless, Larxene—and you know what happens to people who do."

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