When investment is less than planned investment, aggregate planned expenditure is___________
Than actual aggregate expenditure and inventories are ___________than planned.
A) greater; greater
B) greater; less
C) less; less
D) less; greater

Question

Quizplus · Accepted Answer

When investment is less than planned investment, it means that actual spending is higher than anticipated, leading to greater aggregate planned expenditure compared to actual aggregate expenditure. Consequently, inventories are less than planned because more goods are being sold than expected.

When Investment Is Less Than Planned Investment, Aggregate Planned Expenditure