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:

Compared

Evaluated or examined the similarities and differences between two or more entities.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, and a withdrawal from reality into fantasy and delusion.

Hallucinations

Sensory experiences that appear real but are created by the mind, such as hearing voices or seeing things that aren't there.