If Actual Investment Exceeds Planned Investment in a Private Closed

question 29

Multiple Choice

If actual investment exceeds planned investment in a private closed economy, then:

• A) Real GDP will decrease
• B) Real GDP will increase
• C) Saving exceeds planned investment
• D) There is an unplanned decrease in inventories

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Definitions:

Compound Interest

Interest calculated not only on the original amount of the deposit or loan but also on the interest that has accumulated over previous periods.

Compound Interest

Calculated interest on a deposit or loan that involves the initial principal plus the interest that has built up in past periods.

Fraction

A mathematical expression representing the division of one integer by another, indicating a part of a whole.

Decimal Equivalent

A numerical value expressed as a decimal, representing the fraction of a whole number.