Author Question: Which of the following factors changes saving supply and hence shifts the supply of loanable funds ... (Read 65 times)

wrbasek0 · **on:** Jun 29, 2018

Which of the following factors changes saving supply and hence shifts the supply of loanable funds curve?

i. disposable income
ii. wealth
iii. expected profit
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

Question 2

Describe the relationship between aggregate planned expenditure, real GDP, and unplanned inventory changes.

What will be an ideal response?

batool · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

When aggregate planned expenditure exceeds real GDP, unplanned inventory changes are negative. When aggregate planned expenditure is less than real GDP, unplanned inventory changes are positive. When aggregate planned expenditure equals real GDP, unplanned inventory changes are zero, that is, there are no unplanned changes in inventories.