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.

Question

Quizplus · Accepted Answer

In a private, closed economy, equilibrium occurs when saving equals planned investment. Here, saving ($15 billion) equals planned investment ($15 billion), indicating that the economy is in equilibrium.

Consumption Is $141 Billion, Planned Investment Is $15 Billion, and Saving