Declines in Business Inventories Enter National Income Accounts

question 14

Multiple Choice

Declines in business inventories enter national income accounts:

• A)​negatively in the consumption category.
• B)​negatively in the investment category.
• C)​negatively in the net export category.
• D)​positively in the profits category.

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Definitions:

Bid-ask Spread

The difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.

Market Maker

A participant in the financial markets who stands ready to buy and sell securities regularly at their own risk to provide liquidity and help the market function smoothly.

Widgets

Generic term for any unspecified or hypothetical device or product, often used in business or economics as a placeholder name.

Olive Oil

A liquid fat obtained from olives, commonly used in cooking, cosmetics, pharmaceuticals, and soaps.