To Avoid a Coordination Failure, the Intentions of Savers and Investors

question 139

Multiple Choice

To avoid a coordination failure, the intentions of savers and investors must be both

• A)increasing.
• B)at their planned levels.
• C)more than full employment GDP.
• D)at levels set by the government.

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Definitions:

Total Costs

The complete amount of all costs incurred during the production of goods or services, including both steady and varying expenses.

Positive Profits

A financial situation where the revenues generated by a business exceed its costs, leading to a net gain.

Fallacy of Composition

The erroneous belief that what is true for an individual or part will also be true for a group or the whole.

Income

Money received by a person or household over a certain period of time from work, investments, business ventures, or other sources.