1.1.4 In an economy where injections exceed leakages, the. \( \text{ } \) A - production of goods and services will decrease. B - national income will decrease. C - national income will increase. D - gross value added in production will increase.

In an economy where injections exceed leakages, it indicates that more money is being added to the economy (through investments, government spending, and exports) than is being taken out (through savings, taxes, and imports). This situation typically leads to an increase in economic activity. Let's analyze the options: A - production of goods and services will decrease. This is incorrect because an increase in injections generally leads to an increase in production. B - national income will decrease. This is also incorrect, as an increase in injections would typically lead to an increase in national income. C - national income will increase. This is correct. When injections exceed leakages, it stimulates economic activity, leading to an increase in national income. D - gross value added in production will increase. This is likely true as well, since increased economic activity generally leads to higher production levels. Given the analysis, the most direct and clear answer is: **C - national income will increase.**