Question : Inventory falls below the desired level when
Option 1: Savings is more than investment
Option 2: Savings is less than investment
Option 3: Savings is equal to investment
Option 4: None of the above
Correct Answer: Savings is less than investment
Solution : When savings is less than investment it means that households are consuming more as than expected to consume. As a result the inventory falls below the desired level. Hence, Option B is correct.
Question : Inventory rises above the desired level when
Question : Planned inventory would fall below the desired level. When
Question : Aggregate supply is obtained from _________.
Question : Investment which is dependent of the level of income is called:
Question : More than ____ of India’s foreign trade was restricted to Britain.
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