In the Keynesian model, whenever planned investment is less than planned saving
A) the amount of planned investment will decrease, and real GDP will decrease.
B) there will be an unplanned inventory increase, and real GDP will eventually decrease.
C) there will be an unplanned inventory decrease, and real GDP will eventually increase.
D) the amount of planned investment will decrease, and real GDP will remain unchanged.
B
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Economics is a study of how
a. people interact with each other in social situations b. too many goods and services can make people unhappy c. to make resources infinite d. we allocate our resources to satisfy our wants e. to satisfy all of our wants as a society
If the legal reserve requirement is 10 percent, $1,000 cash deposited into a demand deposit account will generate, assuming willing borrowers, an increase in the money supply of
a. $900 b. $1,100 c. $9,000 d. $10,000 e. $11,000