What Is the Result When Real Planned Saving Exceeds Real

question 71

Multiple Choice

What is the result when real planned saving exceeds real planned investment spending?

• A)The economy is in equilibrium.
• B)There is unplanned accumulation of business inventories.
• C)There is unplanned depletion of business inventories.
• D)Employment expands.

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Definitions:

Percentage-of-Completion

An accounting method used to recognize revenues and expenses of long-term contracts as a percentage of work completed during the period.

Revenue Recognition

The accounting principle defining the specific conditions under which revenue is recognized or recorded.

Tax Havens

Countries with no or low corporate taxes.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.