Assume there is no foreign trade and the economy is in equilibrium.If actual investment is greater than desired investment,then it is most likely that
A) Saving plus government spending is greater than investment plus taxes.
B) Saving plus taxes is greater than investment plus government spending.
C) Investment plus taxes is greater than saving plus government spending.
D) Investment plus government spending is greater than saving plus taxes.
Correct Answer:
Verified
Q22: The formula for the multiplier is
A)1/(1 -
Q24: When unwanted inventories pile up in retail
Q28: Assuming an upward-sloping AS curve,if an economy
Q31: When unwanted business inventories pile up,which of
Q32: If consumers spend 80 cents out of
Q32: Desired saving equals desired investment in an
Q33: Desired investment equals
A)Desired changes in business inventories.
B)Purchases
Q34: Classical economists assume that
A)Spending leakages exceed spending
Q34: Which of the following is an example
Q38: If actual investment exceeds desired investment,then
A)A recession
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