If in the Income-Expenditure Model, Firms Increase Their Investments by $100

Multiple Choice

If in the income-expenditure model, firms increase their investments by $100 billion, how do they respond to this increased investment spending initially?

A) by increasing inventories by $100 billion
B) by drawing down inventories and increasing production by $100 billion
C) by increasing the price of goods and services
D) by waiting for demand to decrease
E) They will not respond to the increased demand, and will lose sales.