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What does \[I\] represent in \[AD=C+I\]?

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Question

What does \[I\] represent in \[AD=C+I\]?

Options

  • Inventory Investment only

  • Ex-ante Investment Expenditure

  • Indirect taxes

  • National Income

MCQ
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Solution

The symbol \[I\] represents Ex-ante Investment Expenditure. It is the planned investment component of Ex-ante Aggregate Demand.

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