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26 March, 15:15

Which of the following statements is correct? A. Actual investment equals planned investment when inventories rise. B. Actual investment and planned investment are always equal. C. Actual investment will equal planned investment only when there is no unplanned change in inventories. D. Actual investment equals planned investment only when inventories decline.

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  1. 26 March, 15:30
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    C. Actual investment will equal planned investment only when there is no unplanned change in inventories

    Explanation:

    Planned investment is the total number of investment a firm intend to undertake during a given period of time usually a fiscal year while actual investment is the total number of investment the firm undertakes during the same lifespan of it's planned investment.

    We can always have the both of them to be equal if there is no unplanned change in inventories.
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