The country of Bananaland has an abundant supply of banana trees and therefore must be a modern industrial economy

In Figure 1 above if the economy were at Y3 then we would expect there to be:

A. an increase in consumption spending. B. a reduction in inventories. C. an increase in inventories. D. no change in inventories.

High profits in a particular industry indicate that consumers want more of that industry's goods.

Answer the following statement true (T) or false (F)