What is the difference between actual investment (as defined in GDP) and planned investment?
a. Planned investment does not include unplanned inventory changes; actual investment does.
b. There is no difference; they are the same.
c. Planned investment does not include depreciation; actual investment does.
d. Planned investment includes inventories; actual investment does not.
e. Planned investment includes depreciation; actual investment does not.
A
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An employee in a department store often steals goods when other employees are not around. Because the store does not have a surveillance camera, the store manager is unable to monitor his activities. This behavior is an example of ________
A) adverse selection B) moral hazard C) internalization of externalities D) the paradox of thrift
On which two factors do the consequences of a merger depend?
Whenever there is a surplus in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
During the early 1980s the changes that occurred in inflation and unemployment rates
A. suggest that disinflation can occur only if unemployment increases significantly. B. support the notion of a stable Phillips curve. C. suggest that both inflation and unemployment can be consistently reduced by dramatically increasing interest rates.