Question 1
If inventory stocks are ________ and firms have enough capital and labor to support an output increase, monetary and fiscal policy will be ________.
◦ low; very effective
◦ high; very effective
◦ low; ineffective
◦ zero; useless
Question 2
The trend of the inventory/sales ratio over time indicates that
◦ firms are becoming more efficient in their management of inventory stocks.
◦ the efficiency of firms in their management of inventory stocks has changed very little.
◦ firms continually have less control over managing their inventory stocks.
◦ firms are becoming less efficient in their management of inventory stocks.