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Which of the following correctly distinguishes ex-ante investment?

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Question

Which of the following correctly distinguishes ex-ante investment?

Options

  • It is the unintended increase in inventories after sales

  • It is the actual investment that has already occurred

  • It is planned investment based on expected demand and profits

  • It is investment only for replacing depreciated capital

MCQ
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Solution

It is planned investment based on expected demand and profits

Explanation:

Ex-ante investment is the planned or intended investment for a period, based on expected future demand, profit opportunities, and policy targets.

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