Purchases of Inventories by

question 49

Multiple Choice

Purchases of inventories by

• A) firms are not counted in investment spending.
• B) firms are also counted in investment spending.
• C) households are also counted in investment spending.
• D) households and Firms are also counted in investment spending.
• E) foreign consumers are counter in investment spending.

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Definitions:

Heavily Discounted Price

A significantly reduced price off the original or market cost of goods or services, often used as a promotional strategy.

Psychological Pricing

A pricing strategy intended to encourage customers to buy on the basis of their belief that the product or service is cheaper than it really is.

Less Expensive

Characteristic of a product, service, or proposition that costs less, making it more affordable or providing a budget-friendly option.

Loss Leader

A pricing strategy whereby a business offers a product or service at a lower price in an attempt to attract more customers.