Inventories Held by fiRms

question 166

Multiple Choice

Inventories held by firms

• A) tend to increase the severity of short-run fluctuations.
• B) tend to reduce the severity of short-run fluctuations.
• C) are held by businesses because they are a costless way of responding to demand shocks.
• D) are the result of positive demand shocks.

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A fundamental level of the Cantonese language, involving basic vocabulary and grammar for initial learning stages.