Consumption is $141 billion, planned investment is $15 billion, and saving is $15 billion in a private, closed economy. At this level:
A. Actual investment does not equal planned investment
B. There will be unplanned increases in inventories
C. There will be unplanned decreases in inventories
D. The economy is in equilibrium
D. The economy is in equilibrium
Economics
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A normative economic statement:
a. is a model used to collect data. b. is a statement of fact. c. is a statement of what ought to be, not what is. d. indicates what will occur if certain assumptions are true.
Economics
Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the demand for money if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. The quantity of money demanded will increase.
Economics