What Will Be the Effect of an Excess of Planned

question 81

Multiple Choice

What will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources?

• A) A decline in the rate of interest.
• B) An unintended accumulation of inventories by businesses.
• C) A rise in the real GDP.
• D) The federal budget will automatically move toward a deficit.

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Definitions:

Slotting Allowances

Payments made by manufacturers to retailers to ensure that products are preferentially displayed by the retailer.

Preferentially Displayed

Products or items that are given prominence or priority placement over others in a retail or online setting.

Freestanding Retail Outlet

A retail store that is not attached to any other building and is typically located on its own plot of land.

Major Road

A primary or significant roadway used for travel or transport, often connecting major cities, regions, or areas of interest.