As real GDP ________, aggregate planned expenditure ________
A) decreases; remains the same, because it is independent from real GDP
B) increases; remains the same, because the increase in some components is precisely offset by the decrease in others
C) increases; decreases
D) decreases; increases
E) increases; increases
E
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An increase in the expected rate of inflation will:
A. lower the demand for real balances because the real interest rate will rise. B. lower demand for real balances because the nominal interest rate will rise. C. increase the demand for real balances because the real interest rate will fall. D. increase the demand for real balances because the nominal interest rate will rise.
Refer to the information above. What is the highest value of gross investment over these periods?
A) 140. B) 106.75. C) 89.25. D) 192.5