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Ignoring the Government and Foreign Sectors, There Is an Unplanned

Question 314

Multiple Choice

Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $100 billion at the current level of real national income of $20 trillion. From this information, we know that


A) saving equals $100 billion.
B) consumption expenditures equal $20 trillion less saving less $100 billion.
C) planned investment is $100 billion more than planned saving.
D) planned investment is $100 billion less than planned saving.

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