According to the accelerator principle there is a

This preview shows page 28 - 31 out of 71 pages.

174.According to the accelerator principle there is a _____ relationship between _____ and planned investment spending.A)positive; expected growthB)negative; expected growthC)positive; unplanned inventory investmentD)positive; the interest rate
175.Actual investment equals planned investment:
Page 28
176.Inventory investment is:
177.If a store has 10,000 CDs at the start of the period and 15,000 CDs at the end, then its inventory investment during the period was _____ CDs:
178.Positive unplanned inventory investment occurs when:A)actual depreciation is less than expected.B)actual sales are less than expected.C)actual depreciation is more than expected.D)actual sales are higher than expected.
179.If planned investment spending is $2 trillion and inventories decrease by $0.5 trillion, actual investment spending is:
180.Inventory investment can be:
181.Actual investment spending equals:
182.Rising inventories typically indicate _____ unplanned inventory investment and a _____ economy.A)positive; slowingB)negative; slowingC)positive; expandingD)negative; expanding
Page 29
183.In 2005, Airbus Co. purchased raw materials worth $400 million to manufacture airplanes for a total value of $900 million. In that year, Airbus Co. sold airplanes for a total value of $800 million. During 2005, Airbus Co. registered inventory investment of:
184.Actual investment spending equals:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture