Ignoring the Government and Foreign Sectors, If Planned Investment Spending

question 25

Multiple Choice

Ignoring the government and foreign sectors, if planned investment spending is $500 billion, planned saving is $800 billion, and real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories will

• A)decrease $300 billion.
• B)increase $300 billion.
• C)increase $800 billion.
• D)not change.

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