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Suppose That, in a $10 Trillion Economy, Households Spend $6

Question 158

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Suppose that, in a $10 trillion economy, households spend $6 trillion and $4 trillion is leaked from the economy. If the injections total less than $4 trillion,


A) there will be an intentional decrease in inventories causing the economy to contract.
B) there will be an unintentional increase in inventories causing the economy to expand.
C) there will be an unintentional increase in inventories causing the economy to contract.
D) there will be an unintentional decrease in inventories causing the economy to expand.

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