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VMariaS [17]
3 years ago
10

The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme

nt spending decreases. B. investment spending and savings are always equal. C. investment spending promises higher financial returns than savings. D. savings will decrease as investment spending increases.
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
8 0

The correct option is B

<u>Explanation:</u>

In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.

That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.

Therefore, Option B is correct

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T-H-E

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C. protects the current shareholders against a dilution of their ownership interests.

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Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this? Group of answer
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Answer: c. A bilateral contract

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In a bilateral contract, the parties involved promise to both perform duties to the other which will make them both an obligor and an obligee.

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5 0
3 years ago
Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2021. The notes included: Note A:
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9.17%

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3 years ago
The business arrangement in the newspaper industry in which two separately owned papers in the same city are permitted to combin
musickatia [10]

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3 years ago
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