If planned spending is less than output, there will be an unplanned decrease in inventories.
Correct Answer:
Verified
Q115: The marginal propensity to consume is the
Q116: Withdrawals are endogenous.
Q117: Assuming there is no government or foreign
Q118: In the long run, the marginal propensity
Q119: The marginal propensity to pay taxes is
Q121: The key difference between the Keynesian theory
Q122: The multiplier is the inverse of the
Q123: A rise in the marginal propensity to
Q124: According to the equation of exchange (or
Q125: Monetarist models of inflation have generally assumed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents