Unplanned investment is
A) the level of investment minus depreciation.
B) the level of investment plus depreciation.
C) investment that occurs that is unexpected by the government.
D) investment that firms did not intend to make.

Question

Quizplus · Accepted Answer

Unplanned investment refers to investment that occurs that firms did not intend to make. It can be due to changes in demand or unexpected events that require additional investment to maintain production levels. Option A is incorrect because it only takes into account the level of investment and does not consider the unexpected nature of unplanned investment. Option B is incorrect because it includes depreciation, which is not relevant to unplanned investment. Option C is also incorrect because unplanned investment is not necessarily related to government actions or policies.

Unplanned Investment Is