If Unplanned Inventory Investment Is Positive, Then

question 245

Multiple Choice

If unplanned inventory investment is positive, then

• A) planned investment must be zero.
• B) planned aggregate spending must be greater than aggregate output.
• C) planned aggregate spending must be less than aggregate output.
• D) planned aggregate spending must equal aggregate output.

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Definitions:

Bond Issuance

The process of selling bonds to investors in order to raise capital.

Investing Activities

Financial actions that involve the purchase or sale of long-term assets and other investments not considered cash equivalents.

Repaying Money

The process of returning borrowed funds to the lender along with any agreed upon interest or fees.

Collecting Cash

The process of receiving cash, usually from customers, as payment for goods or services or as repayment of obligations.