Ignoring the Government and Foreign Sectors, There Is an Unplanned

question 10

Multiple Choice

Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $200 billion at the current level of real national income of $12 trillion. From this information, we know that

• A)saving equals $200 billion.
• B)consumption expenditures equal $12 trillion less saving less $200 billion.
• C)planned investment is $200 billion more than planned saving.
• D)planned investment is $200 billion less than planned saving.

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Definitions:

Sella Turcica

A saddle-shaped depression in the sphenoid bone of the human skull, where the pituitary gland is situated.

Sphenoid Bone

A complex bone at the base of the skull that helps form the eye socket, nose, and skull floor.

Squamous Suture

A cranial suture between the parietal and temporal bones of the skull, also known as the sphenosquamosal suture.

Parietal Bones

A pair of bones forming the central side and upper back part of each side of the skull.