What is the result when real planned saving is lower than real planned investment spending?

A. There is unplanned depletion of business inventories.
B. Employment decreases.
C. The economy is in equilibrium.
D. There is unplanned accumulation of business inventories.


Answer: A

Economics

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Which of the following is most likely to cause a rightward shift in the demand curve for dollars in exchange of the Chinese yuan?

A) An increase in the demand for Chinese products in the U.S. B) An increase in the demand for U.S. products in China C) A decrease in the demand for Chinese products in the U.S. D) A decrease in the demand for U.S. products in China

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In general, one would expect that life expectancies reflect international differences in income levels. Do the data support such a claim?

A) Average life span falls as relative poverty falls. B) Average life span increases as relative poverty falls. C) There is no statistically significant relationship between the two. D) The relation is not very strong. E) The relationship looks more like a U-shape.

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Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,

a. Vietnam has a comparative advantage over other countries and Vietnam will import textiles. b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles. c. other countries have a comparative advantage over Vietnam and Vietnam will import textiles. d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles.

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The profit-maximizing decision for the monopoly is:

A. to choose price according to demand. B. to choose the quantity where marginal cost equals marginal revenue. C. the same as that of the perfectly competitive firm. D. All of these statements are true.

Economics