Assume that in a private closed economy consumption is $240 billion and investment is $50 billion,both at the $280 billion level of domestic output.Thus:
A) saving is $10 billion.
B) unplanned decreases in inventories of $10 billion will occur.
C) the MPC is .80.
D) unplanned increases in inventories of $10 billion will occur.

Question

Quizplus · Accepted Answer

The Answer is B

Assume That in a Private Closed Economy Consumption Is $240