In a private closed economy, where aggregate expenditures exceed domestic output:
A)domestic output will decline to the break-even level.
B)business inventories will rise.
C)saving exceeds planned investment.
D)planned investment exceeds saving.

Question

Quizplus · Accepted Answer

When aggregate expenditures exceed domestic output, it indicates that the economy is spending more than it is producing, leading to a situation where planned investment exceeds saving.

In a Private Closed Economy, Where Aggregate Expenditures Exceed Domestic