Identify the Impact of an Increase in the Inventory Stock

question 82

Multiple Choice

Identify the impact of an increase in the inventory stock during a year.

• A)Consumption spending will decrease thereby reducing the GDP.
• B)The GDP of the country should decrease by the amount of the increase in inventory.
• C)The capital investment in the country will increase.
• D)Neither the capital investment nor the GDP will change.
• E)The GDP of the country should increase by the amount of the increase in inventory.

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Definitions:

Form Of Ownership

The legal structure that defines the ownership of a firm or asset, such as sole proprietorship, partnership, or corporation.

Inheritance Interest

A legal or equitable right to receive property or assets from the estate of a deceased person.

Sublease

An agreement where the original tenant of a lease rents out their space to another person, transferring some or all of their tenancy rights.

Rent Payments

Periodic payments made by tenants to landlords in exchange for the use of residential or commercial property.