Solved

Suppose That Storage Costs Increase,so That Firms Decide to Hold

Question 36

Multiple Choice

Suppose that storage costs increase,so that firms decide to hold less output in inventory,other things constant.Which of the following is true?


A) consumption spending will increase
B) consumption spending will decrease
C) investment will increase
D) investment will decrease
E) GDP for this year is not affected

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions