Bathtub theorem is an analogy that explains the effects of exports and imports on national income.
According to the analogy used in the bathtub theorem, national income level is the water in the bathtub. Exports, government spending, or investments inject extra water in the tub, and thus raise the level, while imports, savings, or taxes cause leakages.
1 comment:
Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the Webcam, I hope you enjoy. The address is http://webcam-brasil.blogspot.com. A hug.
Post a Comment