Among the data of Model IV are three variables which were placed in the data category as a temporary measure only, namely I ri (desired real investment in inventories of raw materials and work-in-progress), I ci (desired real investment in inventories of finished goods) and U (undesired real disinvestment in inventories). The main purpose of the present chapter is to develop relationships which will explain these variables and which will enable us to transfer them from the data category to the jointly determined category where they rightly belong.
KeywordsActual Inventory Disposable Income Finished Good Excess Demand Consumer Attitude
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