Ask Question
BusinessBusiness
26 April, 14:23

In the aggregate expenditure model, when is planned investment greater than actual investment?

A. Planned investment always equals actual investement in the aggregate expenditure model.

B. When there is an unplanned decrease in inventories.

C. When there is no unplanned change in inventories.

D. When there is an unplanned increase in inventories.

+1
Answers (1)
  1. 26 April, 16:26
    0
    The correct answer is B. When there is an unplanned decrease in inventories.

    Explanation:

    This happens when the final consumer demands more product than the company had estimated; this means that the demand rises unexpectedtly so companies are forced to increase their production by investing more which grows its expenses.

    There are periods of the year where certain products are more demanded than others. Managers should identify these periods in order to consider it in the planned investment and also have enough inventory, preventing the unplanned decrease in inventories.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the aggregate expenditure model, when is planned investment greater than actual investment? A. Planned investment always equals actual ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
All of the following statements are true, except:a. A firm can make money from inflation by paying bills and wages as late as possible so that it can pay in inflated dollars, while collecting revenues as soon as possible. b.
Answers (1)
The term "data owner" refers to the person or group that manages an it infrastructure. true false
Answers (1)
Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by the County, at the time of the lawsuit the attorneys believed that the County was likely to lose and the estimated amount
Answers (1)
If one nation becomes more efficient than another nation of producing a specific product the more efficient nation is said to have
Answers (1)
Which of the following is a characteristic feature of a confederal system of government? All power is shared and divided between the central and independent local governments. All power is concentrated in the hands of a few individuals.
Answers (1)
New Questions in Business
Name and explain the relationship between corporate social responsibility and triple bottom line.
Answers (1)
One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Answers (1)
Describe an industry or firm that you think might be able to weather an economic downturn and explain why.
Answers (1)
Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 800,000 Variable expenses $ 381,000 Fixed manufacturing expenses $ 263,000 Fixed selling and administrative expenses $ 211,000
Answers (1)
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle.
Answers (1)
Home » Business » In the aggregate expenditure model, when is planned investment greater than actual investment? A. Planned investment always equals actual investement in the aggregate expenditure model. B. When there is an unplanned decrease in inventories. C.
Sign Up Forgot Password?