If a Economy's Planned Expenditures Turn Out to Be Less

question 5

Multiple Choice

If a economy's planned expenditures turn out to be less than production, then inventories will be:

• A) increasing, prompting firms to decrease production in the future.
• B) decreasing, prompting firms to decrease production in the future.
• C) decreasing, prompting firms to increase production in the future.
• D) increasing, prompting firms to increase production in the future.

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Definitions:

Tendrils

Slender, twining strands used by climbing plants and some animals for support and attachment.

Anchor

A device, normally made of metal, used to connect a vessel to the bed of a body of water to prevent it from drifting due to wind or current.

Absorb Water

The process by which materials or organisms take in water through mechanisms such as osmosis or capillary action.

Absorb Minerals

The process by which organisms take in minerals from their surrounding environment or diet for bodily functions.