The Inequality of Saving and Planned Investment

question 50

Multiple Choice

The inequality of saving and planned investment:

• A)is attributable to a low MPC.
• B)may be of considerable significance because of the subsequent changes in income, employment, and the price level.
• C)is of no consequence because a compensating inequality of tax collections and government spending will always occur.
• D)is of no consequence because saving and actual investment will always be equal.

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