Firms react to unplanned inventory reductions by:
A) reducing output.
B) reducing planned investment.
C) increasing consumption.
D) increasing output.
Correct Answer:
Verified
Q50: An increase in government spending will result
Q51: Q52: If a economy's planned expenditures turn out Q53: If the marginal propensity to consume is Q54: A decrease in the price level will: Q56: If both government spending and taxes increase Q57: Assume that the consumption function is C Q58: The Tiny Tots Toy Company manufactures only Q59: The marginal propensity to import is the Q60: Recall Application 4, "The Locomotive Effect: Why
A)
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