Author Question: If aggregate planned expenditure is greater than GDP, then A) the consumption function will shift ... (Read 65 times)

fox · **on:** Jun 29, 2018

If aggregate planned expenditure is greater than GDP, then

A) the consumption function will shift downward to restore the equilibrium.
B) a recession will result.
C) inventory investment is larger than planned.
D) production is too high.
E) inventory investment is smaller than planned.

Question 2

Referring to Figure 19.1, Mexican goods will become cheaper in the United States if the exchange rate goes from ________ to ________ pesos to the dollar.

A) 13; 11 B) 13; 10 C) 12; 11 D) 12; 13