Inventory holdings are fractionally composed of finished goods held in buffer stocks, on the one hand, and material inputs, on the other. The fractions, in the United States, have hovered recently around
A) half in finished goods and half in materials.
B) two-thirds in finished goods and one-third in buffer stocks.
C) two-thirds in finished goods and one-third in materials.
D) one-third in finished goods and two-thirds in materials.
E) no particular distribution because of the variability of the real interest rate.
Correct Answer:
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