What is true of unplanned investment?
A)It is equal to the difference between national income and the level of production.
B)It is the amount of intended investment by firms.
C)It is the amount of investment that results from an unexpected decrease in interest rates.
D)It is equal to the difference between the level of production and aggregate expenditures.

Question

Quizplus · Accepted Answer

Unplanned investment occurs when there is a difference between the actual level of production and the total planned expenditures by all sectors in the economy. This can happen due to unexpected changes in consumer demand or inventory levels, leading to discrepancies between what firms intended to sell and what was actually sold.

What Is True of Unplanned Investment