What Will Be the Effect of an Excess of Planned

question 222

Multiple Choice

What will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources?

• A)a decline in the rate of interest
• B)an unplanned accumulation of inventories by businesses
• C)a rise in the real GDP
• D)the federal budget will automatically move toward a deficit

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Definitions:

Utilitarian

An ethical theory that posits the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Majority

Majority refers to more than half of a specific group or quantity, often used to describe the greater part of a population or collection.

Virtue

Moral excellence or righteousness, characterized by adherence to moral principles like honesty, compassion, and courage.

Ethical Decisions

Choices made based on moral principles and values, considering what is right and wrong, and often involving dilemmas where interests conflict.