The difference between total investment and planned investment is that:
A)planned investment is total investment minus taxes.
B)planned investment is always larger than total investment.
C)total investment includes changes in inventories.
D)planned investment includes changes in inventories.

Question

Quizplus · Accepted Answer

Total investment includes changes in inventories, while planned investment does not necessarily include changes in inventories. Therefore, C is the correct answer. A is incorrect because taxes are not necessarily subtracted from either total investment or planned investment. B is incorrect because planned investment can be larger or smaller than total investment. D is incorrect because planned investment may or may not include changes in inventories.

The Difference Between Total Investment and Planned Investment Is That