5. Actual investment spending in any period is equal to

a. planned investment spending + unplanned inventory investment.

b. planned investment spending − unplanned inventory investment.

c. planned investment spending + inventory decreases.

d. unplanned inventory investment + inventory increases.

e. unplanned inventory investment − inventory increases.

Tackle the Test: Free-Response Questions Answer (7 points)

1 point: 0.8 1 point: $47,000 1 point: Vertical axis labeled “Consumer spending” and horizontal axis labeled

“Current disposable income”

1 point: Vertical intercept of $15,000 1 point: Upward sloping consumption function 1 point: 0.8 1 point: Consumption function shifts downward