Final answer:
True. If a firm's sales are more than expected, then actual investment will be more than planned because the firm may need to increase production capacity or invest in new equipment to meet the higher demand.
Step-by-step explanation:
In this case, if a firm's sales are more than it expected, then actual investment will be more than it planned. If a firm's sales are more than expected, then actual investment will be more than planned because the firm may need to increase production capacity or invest in new equipment to meet the higher demand.
This is because when sales exceed expectations, the firm may need to increase its production capacity or invest in new equipment to meet the higher demand. This additional investment will allow the firm to capitalize on the unexpected sales growth and potentially generate higher profits in the long run.