Assume That in a Private Closed Economy Consumption Is $240

question 34

Multiple Choice

Assume that in a private closed economy consumption is $240 billion and investment is $50 billion,both at the $280 billion level of domestic output.Thus:

• A) saving is $10 billion.
• B) unplanned decreases in inventories of $10 billion will occur.
• C) the MPC is .80.
• D) unplanned increases in inventories of $10 billion will occur.

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Definitions:

Interim Financial Statements

Financial reports covering a period shorter than the fiscal year, often quarterly, to provide an ongoing view of the company's financial position.