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Suppose That Inventories Were $40 Billion in Year 1 and $50

Question 117

Multiple Choice

Suppose that inventories were $40 billion in year 1 and $50 billion in year 2. For year 2, national income accountants would


A) add $10 billion to other elements of investment in calculating total investment.
B) subtract $10 billion from other elements of investment in calculating total investment.
C) add $45 billion (= $90/2) to other elements of investment in calculating total investment.
D) subtract $45 billion (= $90/2) from other elements of investment in calculating total investment.

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