What Is True of Unplanned Investment

question 79

Multiple Choice

What is true of unplanned investment?

• A)It is equal to the difference between national income and the level of production.
• B)It is the amount of intended investment by firms.
• C)It is the amount of investment that results from an unexpected decrease in interest rates.
• D)It is equal to the difference between the level of production and aggregate expenditures.

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, in response to the Great Depression.

Marble Cake Federalism

A model of federalism where government functions and responsibilities are intermixed among the national, state, and local governments, in contrast to clearly divided layers or levels.

Intergovernmental Cooperation

The process and practice of different levels of government (local, regional, national) working together to solve problems and implement policies.

Unfunded Mandate Reform Act

A 1995 United States federal law aimed at limiting the number and cost of federal mandates imposed on state and local governments and private sector businesses.