What Is the Result If Planned Spending Exceeds Planned Output

question 1

Multiple Choice

What is the result if planned spending exceeds planned output?  

• A) unintended inventory increases 
• B) a reduction in GDP 
• C) a decrease in imports 
• D) unintended inventory reductions

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Definitions:

Future Transfer

A financial arrangement or transaction planned to be executed at a future date.

Future Sacrifice

The giving up of future economic benefits as part of a transaction or financial obligation, often related to expenses or liabilities that will result in a decrease in assets or an increase in other liabilities.

Legally Enforceable

A condition where a contract or agreement has terms that can be compelled or upheld by law, granting parties the ability to seek legal remedies in case of breach.

Probable Future Transfer

An anticipated movement of assets, liabilities, or ownership interests that is likely to occur based on current conditions or known events.