A Difference Between Inventory Investment and Fixed Investment Is That

question 63

Multiple Choice

A difference between inventory investment and fixed investment is that

• A)fixed investment is never unplanned.
• B)fixed investment is never planned.
• C)inventory investment is never unplanned.
• D)unplanned inventory investment is always zero.

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Definitions:

Trade Feedback Effect

A phenomenon where an increase in exports leads to an increase in national income and, consequently, an increase in imports.

Economic Flows

Refers to the movements of funds that reflect economic activity, including the flow of money within and between countries, such as trade, investment, and financial transactions.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Countertrade

A trade mechanism in which goods or services are exchanged for other goods or services instead of for money.