Identify the Impact of an Increase in the Inventory Stock

question 73

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 a country should decrease by the amount of the increase in inventory.
• C) The capital investment in a country will increase.
• D) Neither the capital investment nor the GDP will change.
• E) The GDP of a country should increase by the amount of the increase in inventory.

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