The Inequality of Saving and Planned Investment

question 62

Multiple Choice

The inequality of saving and planned investment:

• A)is attributable to a low level of consumption.
• B)may be of considerable significance because of the subsequent changes in income, employment, and the price level.
• C)is of no consequence because a compensating inequality of tax collections and government spending will always occur.
• D)is of no consequence because saving and actual investment will always be equal.

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Definitions:

Procedural Defenses

Legal strategies that focus on the method in which a lawsuit was carried out, rather than on the substantive issues.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, which can be transferred to another holder.

Rescission

The legal nullification of a contract, returning all parties involved to their original positions before the contract was made.

Breach of Duty

Failure to meet a standard of care legally owed to someone, resulting in harm or damage.