When Planned Investment Exceeds Saving in a Private Closed Economy

question 10

Multiple Choice

When planned investment exceeds saving in a private closed economy:

• A) Aggregate expenditures will equal GDP
• B) Aggregate expenditures will exceed GDP
• C) Aggregate expenditures will be less than GDP
• D) Consumption plus investment will equal GDP

---

Definitions:

Debt Capital

Financing acquired through borrowing that must be repaid at a later date, typically with interest.

Private Placements

A means of raising capital through the sale of securities to a relatively small number of select investors rather than through a public offering.

Corporate Debt Issues

refer to the financial obligations or borrowings taken on by companies, typically through the issuance of bonds, loans, or commercial paper.

Corporate Equity Issues

The process by which companies issue shares of stock to raise equity capital.