Desired Level of the Capital Stock 
-Consider the two graphs above.Suppose that improvements in storage technology reduce inventory losses.This would ________ the desired level of inventories,as depicted in graph ________.
Definitions:
Expenses
Outflows or using up of assets as a part of operations of a business to generate revenue.
Equity
The ownership interest held by shareholders in a corporation, represented by the residual assets minus liabilities.
Liabilities
Financial obligations or debts owed by a company to outside individuals or entities.
Assets
Resources owned by a company or individual that have economic value and can provide future benefits.
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