When investment is less than planned investment, aggregate planned expenditure is ________ than actual aggregate expenditure and inventories are ________ than planned.
A) greater; greater
B) greater; less
C) less; greater
D) less; less

Question

Quizplus · Accepted Answer

When investment is less than planned investment, it means that actual spending is lower than what was intended, leading to aggregate planned expenditure being greater than actual aggregate expenditure. Consequently, inventories are less than planned because the lower actual spending results in fewer goods being produced or sold than anticipated.

When Investment Is Less Than Planned Investment, Aggregate Planned Expenditure