When Actual Investment Is Greater Than Planned Investment

question 97

Multiple Choice

When actual investment is greater than planned investment:

• A)firms sold less output than expected.
• B)firms sold more output than expected.
• C)the quantity of output sold is the amount the firm expected to sell.
• D)the economy produces the short-run equilibrium output.

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Definitions:

Indirectly Borrowing

Obtaining funds through an intermediary, such as by taking out a loan through a bank, rather than directly from a lender.

Bonds

Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and repays the principal at maturity.

Financial Intermediaries

Institutions that facilitate the channeling of funds between lenders and borrowers.

Financial Assets

Instruments that hold monetary value, such as stocks, bonds, or bank deposits, which can be traded in financial markets.