When expenditures exceed income, businesses experience:
A) an increase in inventories.
B) a drop in inventories.
C) an increase in supply.
D) a decrease in supply.

Question

Quizplus · Accepted Answer

When expenditures exceed income, it typically means that a business is selling more than it is currently producing or purchasing, leading to a drop in inventories as existing stock is sold off without being replenished at the same rate.

When Expenditures Exceed Income, Businesses Experience