When Spending Is Equal to Output and the Economy Has

question 74

True/False

When spending is equal to output and the economy has reached spending balance, inventory investment must equal zero. Please answer true or false, and explain.

---

Definitions:

Economic Development

A process by which a nation improves the economic, political, and social well-being of its people.

International Transactions

Financial transactions and trade activities that occur between residents of different countries, including exports, imports, and capital flows.

International Monetary Fund

An international organization created for the purpose of promoting global monetary cooperation and financial stability.

Exchange Rates

The price of one currency in terms of another, determining how much of one currency can be exchanged for another.