In the Keynesian Model, Whenever Planned Investment Is Greater Than

question 197

Multiple Choice

In the Keynesian model, whenever planned investment is greater than planned saving

• A) the amount of planned investment will decrease, and real GDP will decrease.
• B) the amount of planned investment will decrease, and real GDP will remain unchanged.
• C) there will be an unplanned inventory decrease, and GDP will eventually increase.
• D) there will be an unplanned inventory increase, and GDP will eventually decrease.

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Definitions:

Ordinary Buyers

Refers to typical consumers in the market who purchase goods or services for personal use.

Voidable Title

A legal title to property that may be annulled or invalidated due to certain circumstances, such as fraud or misrepresentation.

Sale of Goods

A transaction between a buyer and a seller in which ownership of physical products is transferred in exchange for money.

Transaction

A swap or transaction involving goods, services, or money among two or more entities.