The Classical Economists Argued That Planned Saving and Planned Investment

question 19

Multiple Choice

The classical economists argued that planned saving and planned investment will always be equal because of changes in

• A) the level of real disposable income.
• B) the interest rate.
• C) the price level.
• D) wages.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted based on the investor's share of the investee's profits or losses.

Acquisition Combination

The process of uniting two or more entities into one, typically through the purchase of one by another, and integrating their operations.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after intercompany transactions have been eliminated, presented in a single figure.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.