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In the Income-Expenditure Framework, Suppose Planned Aggregate Expenditures Are Greater

Question 9

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In the income-expenditure framework, suppose planned aggregate expenditures are greater than real GDP.How will inventories be affected?  


A)  Inventories will stay the same. 
B)  Inventories will first increase, and then decrease. 
C)  Inventories will increase. 
D)  Inventories will decrease.

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