Which Component of GDP Includes Inventory Changes

question 211

Multiple Choice

Which component of GDP includes inventory changes?

• A) consumption
• B) investment
• C) government spending
• D) Inventory changes are not included in GDP.

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Definitions:

Compounded Monthly

Interest on an investment or loan calculated and added to the principal balance on a monthly basis, allowing it to grow at an accelerated rate.

Monthly Payment

Monthly payment is the amount of money paid each month on a loan, mortgage, or other debt.

Amortization Schedule

An Amortization Schedule is a table detailing each periodic payment on an amortizing loan, showing amounts paid to principal and interest.

Interest on Unpaid Balance

Interest charged on the portion of a loan or credit card balance that has not been paid off within the agreed period.