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If Firms' Inventories Are Less Than They Planned,aggregate Planned Expenditure

question 415

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If firms' inventories are less than they planned,aggregate planned expenditure is ________ real GDP and firms ________ their production.


Definitions:

APR

Annual Percentage Rate; a measure of the cost of credit, expressed as a yearly interest rate.

Rate of Compounding

The rate at which an investment grows due to compounding, where interest earns interest over periods.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a country's central bank.

Present Value

The present worth of a future sum of money or series of cash flows, based on a given return rate.

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