Ask Question
BusinessBusiness
22 September, 22:26

In the aggregate expenditure model, when is planned investment greater than actual investment?

A. Planned investment always equals actual investement in the aggregate expenditure model.

B. When there is an unplanned decrease in inventories.

C. When there is no unplanned change in inventories.

D. When there is an unplanned increase in inventories.

+5
Answers (1)
  1. 23 September, 00:06
    0
    The correct answer is B. When there is an unplanned decrease in inventories.

    Explanation:

    This happens when the final consumer demands more product than the company had estimated; this means that the demand rises unexpectedtly so companies are forced to increase their production by investing more which grows its expenses.

    There are periods of the year where certain products are more demanded than others. Managers should identify these periods in order to consider it in the planned investment and also have enough inventory, preventing the unplanned decrease in inventories.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the aggregate expenditure model, when is planned investment greater than actual investment? A. Planned investment always equals actual ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Final reports represent the end product of a thorough investigation and analysis. They provide an ordered format for presenting information to decision makers and are divided into segments to make information comprehensible and accessible.
Answers (1)
If the supply of solar panels increases, 1. the price and quantity of solar panels increases. 2. the demand for solar panels increases. 3. the price of solar panels decreases and the quantity increases. 4.
Answers (1)
How many single-family residences can a broker manage without having to open a trust account only for rents and deposits (separate from his sales trust accounts) ?
Answers (1)
Who were the byzantines
Answers (2)
Chin needs more money in his net pay each month so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.
Answers (1)
New Questions in Business
What is a great marketing strategy
Answers (2)
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.
Answers (1)
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred.
Answers (1)
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced? a. They are equal. b.
Answers (1)
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year.
Answers (2)
Home » Business » In the aggregate expenditure model, when is planned investment greater than actual investment? A. Planned investment always equals actual investement in the aggregate expenditure model. B. When there is an unplanned decrease in inventories. C.
Sign Up Forgot Password?