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Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500. Calculate the number of days' sales in inventory.
Induced Consumption
The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.
Disposable Income
The financial capabilities households have for saving and spending endeavors post income tax deductions.
Consumption
The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.
Induced Consumption
The portion of consumer spending that increases or decreases as disposable income increases or decreases, respectively.
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