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:

Risky-Shift Effect

A phenomenon where a group collectively decides on a course of action that is riskier than the decisions that individual group members would make on their own.

Informational Influence

Informational Influence occurs when individuals conform to the behaviors or attitudes of a group to obtain and accept accurate information or because they believe the group is competent.

Groupthink

A phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often in group settings, leading to uncharacteristic behavior.