Undesired or Unplanned Inventory Accumulation Is Likely to Occur When

question 29

Multiple Choice

Undesired or unplanned inventory accumulation is likely to occur when

• A)consumption exceeds investment.
• B)investment exceeds consumption.
• C)autonomous expenditure exceeds induced expenditure.
• D)desired aggregate expenditure exceeds actual aggregate expenditure.
• E)actual aggregate expenditure exceeds desired aggregate expenditure.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Lump Sum

A single payment made at a particular time, as opposed to a series of payments made over time.

Future Value

The value of an investment or cash flow at a specified future date, considering the applied interest rate or rates of return.

Cash Flow Stream

A cash flow stream is a series of cash inflows and outflows over a period of time, typically used in financial analysis to determine the value or profitability of an investment.