If saving is greater than intended investment, the economy is

a. in equilibrium, and there is no change in business inventories
b. not in equilibrium, and business inventories will decrease
c. in equilibrium, and actual investment is equal to intended investment
d. not in equilibrium, and business inventories will increase
e. not in equilibrium, and the level of income will rise


D

Economics

You might also like to view...

An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________

A) reserves; monetary base B) Fed liabilities; money multiplier C) Fed assets; monetary base D) Fed assets; money multiplier

Economics

Indirect quotations in terms of foreign currency refers to:

A) expressing exchange rates as units of foreign currency in terms of domestic currency B) expressing exchange rates as units of domestic currency in terms of foreign currency C) expressing exchange rates of less traded currency by using a "major" currency D) expressing exchange rates in terms of commodities such as gold

Economics

Contractionary fiscal policy actions

A) Would increase farmers' total assets. B) Would increase farmers' operating expenses. C) Would decrease farmers' fixed liabilities. D) None of the above.

Economics

The price facing the "representative firm" falls when market supply rises.

a. true b. false

Economics