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A producer plans to add Rs.200 worth of goods to her stock by the end of the year. However due to an unexpected fall in the demand for her goods she adds Rs.250 worth of goods. Her ex-ante investment was____ and ex post investment was____

Solution

Correct Option: 3

Ex-ante refers to planned/intended investment, which was Rs.200. Ex-post refers to actual investment, which became Rs.250 due to unplanned inventory accumulation from the fall in demand. Hence Rs.200, Rs.250.

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