Firms Would Reduce Output as a Reaction to

question 252

Multiple Choice

Firms would reduce output as a reaction to

• A) unplanned inventory increases.
• B) increased demand for output.
• C) unplanned inventory reductions.
• D) decreases in costs of resources.

---

Definitions:

Checking Accounts

Bank accounts that allow for easy access to funds through checks, debit cards, and electronic transfers.

Cash Equivalents

Cash equivalents are highly liquid investment securities with maturities of three months or less, making them almost as liquid as cash itself.

Time Deposits

Banking products that hold a fixed amount of funds for a specified period of time, earning interest, such as CDs.

Recordkeeping

The systematic process of maintaining records for financial transactions and other business activities.