If There Is No Government or Foreign Sector and Planned

question 38

Multiple Choice

If there is no government or foreign sector and planned investment equals planned saving, then

• A)actual output is equal to planned spending on consumption and investment
• B)consumption plus investment equals income
• C)the quantity of output produced is equal to aggregate demand
• D)there are no unplanned inventory changes
• E)all of the above

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Definitions:

Services

Intangible products provided to consumers, which could include education, healthcare, and entertainment, among others.

Exchange Rate

The rate at which one currency can be exchanged for another.

Country's Currency

The legal tender or medium of exchange that is issued by a country and used for financial transactions within its borders.

Indirect Exporting

A method of exporting goods through intermediaries, rather than directly to the foreign market.