For each event, explain whether planned investment spending or unplanned inventory investment will change and in what
Question:
For each event, explain whether planned investment spending or unplanned inventory investment will change and in what direction.
a. An unexpected increase in consumer spending
b. A sharp rise in the cost of business borrowing
c. A sharp increase in the economyʼs growth rate of real GDP
d. An unanticipated fall in sales.
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a An unexpected increase in consumer spending Planned investment spending This is likely to increase When consumer spending unexpectedly increases bus...View the full answer
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