When There Is Positive Unplanned Investment, Firms Typically Respond By

question 41

Multiple Choice

When there is positive unplanned investment, firms typically respond by:

• A) increasing production to meet the unfulfilled demand.
• B) reducing production to allow inventories to return to the desired level.
• C) increasing production to allow the economy to reach full employment.
• D) reducing production to prevent inflation from increasing.

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or relationship.

Mutuality

The quality or condition of being mutual; reciprocal relations or feelings between individuals or groups.

Interdependence

A relationship between two or more parties where their actions and outcomes are mutually reliant on each other.

Parasocial Relationship

A one-sided relationship where one party knows a great deal about the other, who is typically a public figure or character, without any personal interaction.