-Refer to the above information.When the real interest rate is 10 percent,unplanned changes in inventories are equal to:
A) $40
B) -$30.
C) $20
D) -$60.

Question

-Refer to the above information.When the real interest rate is 10 percent,unplanned changes in inventories are equal to:
A) $40 
B) -$30. 
C) $20 
D) -$60.

Quizplus · Accepted Answer

Unplanned changes in inventories are equal to the difference between actual and planned inventories. Actual inventories are equal to $100, and planned inventories are equal to $60. Therefore, unplanned changes in inventories are equal to $100 - $60 = $40.

-Refer to the Above Information