When Would We Expect to See Undesired or Unplanned Inventory

question 150

Multiple Choice

When would we expect to see undesired or unplanned inventory accumulation?

• A)when consumption exceeds investment
• B)when investment exceeds consumption
• C)when autonomous expenditure exceeds induced expenditure
• D)when desired aggregate expenditure exceeds actual aggregate expenditure
• E)when actual aggregate expenditure exceeds desired aggregate expenditure

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Definitions:

Building

A structure with a roof and walls, such as a house or factory, constructed as a dwelling or for a business or other use.

Rawhide Tanning

The process of treating raw hides and skins with chemical solutions to produce leather.

CCA Rate

The Capital Cost Allowance rate refers to the annual depreciation rate that is applicable for tax purposes on a depreciable asset, allowing businesses to write off a portion of the asset's cost over its useful life.