All Else Equal, an Increase in Inventories Will

question 11

Multiple Choice

All else equal, an increase in inventories will

• A) decrease GDP because the goods are not sold.
• B) not affect GDP since income is not affected.
• C) increase GDP by increasing investment.
• D) not affect GDP because the goods are not sold.
• E) b and d.

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Definitions:

Madison Grant

An American author and eugenicist best known for his work "The Passing of the Great Race," which played a significant role in the development of early 20th-century eugenics in the United States.

Anglo-Saxons

A group of Germanic peoples who migrated to Great Britain from continental Europe, whose culture and language significantly influenced the early medieval history of England.

Native American

Indigenous peoples of the Americas who were the original inhabitants of the land prior to European colonization, with diverse cultures, languages, and histories.

Randolph Bourne

An early 20th-century American intellectual and writer known for his criticisms of U.S. involvement in World War I and his essays on society and culture.