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If an Economy at the Equilibrium Level of GDP Experiences

Question 150

Question 150

Multiple Choice

If an economy at the equilibrium level of GDP experiences an increase in the amount of investment spending, then inventories will be

A) depleted, causing firms to cut production.
B) accumulated, causing firms to cut production.
C) depleted, causing firms to increase production.
D) accumulated, causing firms to expand production.

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