In the Keynesian model, whenever planned investment is greater than planned saving
A. the amount of planned investment will decrease, and real GDP will remain unchanged.
B. there will be an unplanned inventory decrease, and GDP will eventually increase.
C. the amount of planned investment will decrease, and real GDP will decrease.
D. there will be an unplanned inventory increase, and GDP will eventually decrease.
Answer: B
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According to the Aggregate Demand Aggregate Supply diagram, short-term, an anti-inflation policy creates:
A. higher output. B. higher unemployment C. lower inflation. D. higher inflation.
If the price elasticity of demand for a product measures .45,
a. this good has many available substitutes.
b. this good must be a nonessential good.
c. this good is a high-priced good.
d. a decrease in price will increase total revenue.
e. this good is demand price inelastic.