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In the Income-Expenditure Framework, If Planned Aggregate Expenditures Are Less

Question 134

Multiple Choice

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

A) Inventories will stay constant.
B) Inventories will match aggregate expenditures.
C) Inventories will increase.
D) Inventories will decrease.

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