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Suppose the producers plans to add Rs. 100 cr worth of goods to her stock by the end of the year. However, due to an unforeseen upsurge of demand for her goods in the market, she had to sell goods worth Rs. 30 cr from her existing stock.

Now, determine Ex-ante Investment and Ex-post Investment from the above information.

Solution

Correct Option: 2

Ex-ante investment is the planned change in inventory =100= 100 crore. Ex-post (actual) investment accounts for the unplanned sale of 30 crore from stock, so actual change in inventory =10030=70= 100 - 30 = 70 crore.

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