In Year 1, Inventories Rose by $25 Billion

question 37

Multiple Choice

In Year 1, inventories rose by $25 billion.In Year 2, inventories fell by $20 billion.In calculating total investment, national income accountants would have:

• A)decreased it by $25 billion in Year 1 and increased it by $20 billion in Year 2.
• B)decreased it by $25 billion in Year 1 and increased it by $5 billion in Year 2.
• C)increased it by $25 billion in Year 1 and decreased it by $5 billion in Year 2.
• D)increased it by $25 billion in Year 1 and decreased it by $20 billion in Year 2.

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