If a economy's planned expenditures turn out to be greater than production, then inventories will be:
A) decreasing, prompting firms to increase production in the future.
B) decreasing, prompting firms to decrease production in the future.
C) increasing, prompting firms to decrease production in the future.
D) increasing, prompting firms to increase production in the future.
Correct Answer:
Verified
Q115: Q116: When the consumption function is expressed as Q117: Suppose investment increases by $200 and that Q118: A decrease in the price level will Q119: Assume that the consumption function is C Q121: A decrease in the government expenditures will: Q122: Recall Application 1, "Falling Home Prices, the Q123: A deterioration in consumer confidence will![]()
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A) shift
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