If Firms Sell Less Than Expected, Actual Investment Increases Because

question 89

Multiple Choice

If firms sell less than expected, actual investment increases because _____, which is counted as investment.

• A)the unsold goods are added to inventory
• B)the government buys the unsold goods
• C)the unsold goods are distributed to poor households
• D)households buy the unsold goods are bargain prices

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Definitions:

Equilibrium Quantity

The quantity of a good or service at which supply and demand are balanced, leading to a stable market price.

Commodity X

A placeholder term for any generic good that is interchangeable with other goods of the same type and is not differentiated in the market by its features.

Advanced Analysis

The application of sophisticated methods and techniques in the assessment, evaluation, and understanding of complex subjects or data.

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, leading to a stable market condition.