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In the Keynesian Model, Whenever Planned Investment Is Greater Than

Question 197

Multiple Choice

In the Keynesian model, whenever planned investment is greater than planned saving


A) the amount of planned investment will decrease, and real GDP will decrease.
B) the amount of planned investment will decrease, and real GDP will remain unchanged.
C) there will be an unplanned inventory decrease, and GDP will eventually increase.
D) there will be an unplanned inventory increase, and GDP will eventually decrease.

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