At Equilibrium Expenditure, Unplanned Changes in Inventory

question 54

Multiple Choice

At equilibrium expenditure, unplanned changes in inventory

• A) must be zero.
• B) must be negative.
• C) must be positive.
• D) might be either positive or negative.

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Definitions:

Asset Beta

A measure of the systematic risk of a firm's assets, used in the Capital Asset Pricing Model (CAPM) to determine the expected return of the asset.

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.