In the Keynesian model, whenever planned investment is less than planned saving
A. there will be an unplanned inventory decrease, and real GDP will eventually increase.
B. the amount of planned investment will decrease, and real GDP will decrease.
C. the amount of planned investment will decrease, and real GDP will remain unchanged.
D. there will be an unplanned inventory increase, and real GDP will eventually decrease.
Answer: D
You might also like to view...
An economy that has a domestic and a foreign sector is called:
A) a mixed economy. B) an open economy. C) a closed economy. D) a command economy.
The main difference between a firm that is a price searcher and a firm that is a price taker is that a
a. price searcher produces products that are identical to its competitors' products. b. price taker can decide what price to charge for its product. c. price searcher cannot decide what price to charge for its product. d. price searcher will still be able to sell some of its product if it increases its price.
Most of the total income earned in the U.S. economy is ultimately paid to
a. landowners in the form of rent. b. owners of capital in the form of interest. c. households in the form of wages and fringe benefits. d. households in the form of welfare, disability, and Social Security payments.
In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price:
a. Up and quantity supplied up b. Down and demand down c. Up and quantity supplied down d. Up and supply up