If the Change in Business Inventories Is Zero, Then Final

question 69

Multiple Choice

If the change in business inventories is zero, then final sales are

• A) zero.
• B) less than GDP.
• C) greater than GDP.
• D) equal to GDP.

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Definitions:

Savers

Individuals who allocate a portion of their income towards savings, either in cash, bank deposits, or other forms of investment, for future use.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Intermediaries

Entities or individuals that act as a middleman in transactions between buyers and sellers, facilitating trade and potentially adding value.

Dividends

payments made by a corporation to its shareholder members, usually derived from the company's profits.