Suppose That Inventories Were $80 Billion in Year 1 and $70

question 173

Multiple Choice

Suppose that inventories were $80 billion in year 1 and $70 billion in year 2. For year 2, national income accountants would

• A) add $10 billion to other elements of investment in calculating total investment.
• B) subtract $10 billion from other elements of investment in calculating total investment.
• C) add $75 billion (= $150/2) to other elements of investment in calculating total investment.
• D) subtract $75 billion (= $150/2) from other elements of investment in calculating total investment.

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