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Explain Why a Decrease in Planned Investment, Which Is a Change

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Essay

Explain why a decrease in planned investment, which is a change in the goods market, will upset the equilibrium in the money market.


Definitions:

Exempt Items

Goods or services that are not subject to tax under specific tax laws or regulations.

Gross Income

The total income from all sources before any deductions or taxes are taken out.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Inventory

Inventory encompasses the goods and materials a business holds for the purpose of resale or production.

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