Injection and Withdrawal

Injection and Withdrawal/Leakages.

Withdrawal and injection are the terms used in describing economic expenditures and related to the circulation of the money in an economy.

Injection is one of approach to increase the finance in economy. The money is injected into economy through injection elements; consumption, investment, government expenditure and export, and this will lead to increase in national income.

injection = I + G + X

Withdrawal is just opposite to injection. When the money is taken out from the economy, it’ll be considered as withdrawal like saving, taxes and imports. These components will decrease national income. 

withdrawal = S + T + M 

injection = withdrawal

I + G + X = S + T + M