ZuoTi.Pro
Question

If total actual investment exceeds planned investment. , Select one: O a. consumption must equal investment 量 b. the economy will grow faster than anticipated 置, c. firms have underestimated demand for their goods d. injections must equal leakages ca e. firms must have an unplanned reduction in invento

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Correct option: (e)

Reason: When actual investment exceeds planned investment then production is more than anticipated and thus there will be unplanned Decrease in inventory as firms will need more inventory now which was kept for future.

0 0
Add a comment
Know the answer?
Add Answer to:
If total actual investment exceeds planned investment. , Select one: O a. consumption must equal investment...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • First blank: Imports, exports, saving, or taxes? Select all that apply Second Blank: Always, when savings...

    First blank: Imports, exports, saving, or taxes? Select all that apply Second Blank: Always, when savings equals planned investment, when real GDP is equal to aggregate expenditure, or when exports are equal to imports? 2. Leakages and injections Aa Aa E increases total injections into the Suppose the economy is initially in equilibrium, when an increase in economy. Which of the following will occur as a result of this change? I GDP rises above planned spending. O Firms experience an...

  • 1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned...

    1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned investment. b) actual investment is less than planned investment. c) actual investment must be negative. d) actual and planned investment are equal. Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8 2) Refer to Figure 8.8. The amount of planned investment decreases if the interest rate a) rises from 4% to 8%. b) remains at 8%....

  • 2. Let capital investment=10, planned inventory investment=10, consumption=120 when income=100, consumption=200 when income=200. planned and unplanned...

    2. Let capital investment=10, planned inventory investment=10, consumption=120 when income=100, consumption=200 when income=200. planned and unplanned inventory chang (a) Complete the table below. must be equal to savi: Unplanned Actual/ Actual inventory inventory investment change 100 200 300 400 (b) What are the MPC, MPS, and multiplier? ..................... (c) What are the consumption function and saving function? 1001 100 SAL (d) Draw the AE curve and indicate the equilibrium in the AE diagram. +40+ +407 (e) Draw the investment curve...

  • 1. A self-employed woman marries the man she has been paying to do her accounting. After...

    1. A self-employed woman marries the man she has been paying to do her accounting. After they marry they decide there is no point continuing to write a check to him since they are now one-household. What effect does this have on GDP? Select one: a. None, since only their legal status changes and the same amount of productive activity is being done. b. GDP decreases because his accounting services were an intermediate good and are now a final good....

  • c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values...

    c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign. d. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a numerical value rounded to two decimal places as necessary. e. For each level of actual aggregate expenditure, label the future output tendency as "increase," "decrease," or "same" based on what you...

  • 26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases....

    26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...

  • two questions thanks！ An unplanned decrease in inventories results in Select one: A. a decrease in...

    two questions thanks！ An unplanned decrease in inventories results in Select one: A. a decrease in planned investment. B. an increase in planned investment. C. actual investment that is less than planned investment D. actual investment that is greater than planned investment. x Which of the following explains the cause of the change in the unemployment rate at the end of a recession? Select one: a. Discouraged workers leave the labor force, and this makes the unemployment rate rise. b....

  • 6.The Aggregate Demand (AD) curve is obtained by combining: (a) The consumption function, planned investment and...

    6.The Aggregate Demand (AD) curve is obtained by combining: (a) The consumption function, planned investment and the central bank's policy reaction function. (b) The consumption function and the Taylor rule. (c) The equation for PAE, the central bank's policy reaction and Y = PAE. (d) Y=PAE and the consumption function. (e) The equation for planned investment and the central bank policy reaction function. 7.The AD curve is generally assumed to have a negative slope. However, which of the following would...

  • According to Keynesian theory, the most important determinant of saving and consumption is Select one: a....

    According to Keynesian theory, the most important determinant of saving and consumption is Select one: a. the level of real income. b. the stock of liquid assets. c. the stock of durable goods in the consumer's possession. d. the level of consumer indebtedness. Question 5 Not yet answered Marked out of 1.00 Flag question Question text In the Keynesian model, planned investment is inversely related to Select one: a. the interest rate. b. the level of income. c. the wage...

  • Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om...

    Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om 0 1 2 3 4 5 6 7 8 9 10 Real disposable income (trillions of dollars per year) 23. In Exhibit 8-8, what is the households' marginal propensity to consume (MPC)? 20.5. c. 0.8. b. 0.75 d. 1. 24. Using the Keynesian aggregate expenditures model, which of the following is true? a Macro equilibrium may occur at levels of real GDP other than...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT