Over Time in the Long Run We Expect Unplanned Inventory

Multiple Choice

Over time in the long run we expect unplanned inventory expenditure to:

A) equal zero as planned inventories should equal actual inventories.
B) increase because firms have a hard time figuring out what consumers want.
C) be negative as firms will tend to reduce production is they think people won't purchase their product.
D) be positive as on average firms tend to be optimistic about sales, but if they don't sell product they store it.