Saving is $40 billion and planned investment is $28 billion at the $175 billion level of output in a private closed economy.At this level,
A)consumption will be $147 billion.
B)actual investment will be $28 billion.
C)unplanned investment will be positive $12 billion.
D)unplanned investment will be negative $12 billion.

Question

Quizplus · Accepted Answer

Unplanned investment is the difference between saving and planned investment. Here, saving ($40 billion) is greater than planned investment ($28 billion), resulting in positive unplanned investment of $12 billion.

Saving Is $40 Billion and Planned Investment Is $28 Billion