If Planned Expenditures Equal $16 Trillion When Real GDP Is

question 197

Multiple Choice

If planned expenditures equal $16 trillion when real GDP is $16.5 trillion, then

• A) inventories will decrease by $0.5 trillion.
• B) actual investment will exceed planned investment.
• C) there will be excess demand for most goods.
• D) the economy must have a trade surplus to sell the excess goods and services.

Understand the motives for holding cash in an organization.

Identify and explain the concepts of float in cash management.

Understand the strategic significance of collection and disbursement floats in cash management.

Comprehend the BAT and Miller-Orr models for managing cash balances.

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Flood Embankments

Structures built near rivers or coastlines to prevent or reduce the risk of flooding in adjacent land areas; typically earth or concrete barriers.

Social Overhead Capital

Public capital investments in infrastructure like roads, schools, and hospitals, which are necessary for economic activity but not directly profitable.

Human Capital

Refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.