What is the result when real planned saving is lower than real planned investment spending?
A) The economy is in equilibrium.
B) There is unplanned accumulation of business inventories.
C) There is unplanned depletion of business inventories.
D) Employment decreases.

Question

Quizplus · Accepted Answer

When real planned saving is lower than real planned investment spending, it indicates that consumers are spending more and saving less than businesses anticipated. This leads to an unplanned depletion of business inventories as sales exceed expectations.

What Is the Result When Real Planned Saving Is Lower