-Refer to the Above Diagram for a Private Closed Economy

question 26

Multiple Choice

-Refer to the above diagram for a private closed economy.At the $300 level of GDP:

• A) planned investment will exceed saving,but actual investment will be equal to saving.
• B) aggregate expenditures will exceed GDP,causing GDP to rise.
• C) actual investment will exceed planned investment.
• D) households will consume in excess of their incomes.

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Definitions:

Loan Repaid

The process of paying back borrowed money to the lender, typically including both the principal amount and any accrued interest.

Borrower Dies

The situation where an individual who has taken out a loan passes away, potentially affecting the repayment obligations and terms of the loan.

Recorded Mortgage

A mortgage that has been formally documented with a governmental office or registry, thereby providing public notice of the lien on the property.

Financing Commitment

An assurance provided by a lender indicating the terms under which they agree to lend money to a borrower.