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) exceeds planned investment ($28 billion) by $12 billion, indicating positive unplanned investment.

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