If Planned Expenditures Equal $13 Trillion When Real GDP Is

question 350

Multiple Choice

If planned expenditures equal $13 trillion when real GDP is $13.5 trillion, then

• A) there will be excess demand for most goods.
• B) actual investment will exceed planned investment.
• C) inventories will decrease by $0.5 trillion.
• D) the economy must have a trade surplus to sell the excess goods and services.

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Definitions:

17th Monthly Payment

Refers to the seventeenth installment in a series of scheduled payments, typically within a loan or mortgage plan.

Compounded Monthly

This refers to the process of adding interest to the principal balance of a loan or investment on a monthly basis.

Amortized

The gradual reduction of a debt over a period of time by making regular payments of interest and principal.

31st Payment

The payment made as the thirty-first installment in a series of payments or financial obligations.