Investment can mean the amount a producer plans to add to his inventory, which may be different from what she ends up doing. Arrange the given case study considering this process of ex-ante to ex-post investment. (A) At the end of the year, his inventory goes up by Rs 70 only Choose the correct answer from the options given below: |
(A), (B), (C), (D) (B), (A), (C), (D) (C), (B), (D), (A) (B), (A), (D), (C) |
(C), (B), (D), (A) |
The correct answer is Option (3) → (C), (B), (D), (A) Option (C): The process begins with the producer planning to add ₹100 worth of goods to his inventory. This is the ex-ante investment (planned investment). Option (B): An unexpected rise in demand causes more goods to be sold than anticipated. Option (D): To meet this increased demand, the producer sells ₹30 worth of goods from his stock, reducing what he could add to inventory. Option (A): Finally, as a result of selling from stock, actual inventory increases by only ₹70. This is the ex-post investment (actual investment). This sequence shows the shift from planned (ex-ante) investment to actual (ex-post) investment due to unexpected market conditions. |