Goods That Are Produced in a Particular Period but NOT

question 155

Multiple Choice

Goods that are produced in a particular period but NOT sold in that period:

• A) go into inventory and are called consumption.
• B) end up in inventory and are included in investment.
• C) are finally included in depreciation when they are sold.
• D) are classified as intermediate goods.

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Definitions:

M1

A category within the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

Accounts held at financial institutions that earn interest while providing funds liquidity with few, if any, restrictions on withdrawals.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any advance notice.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, and other liquid assets quickly convertible to cash.