Yes, an interest-bearing deposit is considered an injection in the economy. When individuals or businesses make deposits in banks, they provide additional funds to the banking system, which increases the amount of money available for lending and investing. This injection of funds stimulates economic activity by enabling banks to make loans to businesses and individuals, who can then invest, spend, or engage in other economic activities.
No, an interest-bearing deposit is not considered an injection in the economy. In the context of macroeconomics, injections refer to the addition of funds into the circular flow of income and spending, which includes government spending, investment, and exports. Interest-bearing deposits, on the other hand, are financial assets held by individuals or businesses in banks, which earn interest over time. While interest-bearing deposits play a role in the financial system by facilitating saving and lending, they do not directly inject new spending or income into the economy.
