
If desired spending is less than output,then firms:
A) accumulate their inventories and cut production.
B) deplete their inventories and cut production.
C) deplete their inventories and increase production.
D) accumulate their inventories and increase production.
Correct Answer:
Verified
Q34: The aggregate expenditure in an open economy
Q35: Government expenditures are considered autonomous in the
Q36: Taxes levied on a firm's earnings _
Q37: The extent to which investment spending changes
Q38: The change in import spending due to
Q40: In an open economy,injections and leakages are
Q41: Decrease in government spending will _ the
Q42: Increases in autonomous spending have an expansionary
Q43: The function that shows the inverse relationship
Q44: Decrease in the real interest rate will
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents