In an Economy,the Value of Inventories Fell from $75 Billion

question 176

Multiple Choice

In an economy,the value of inventories fell from $75 billion in 2012 to $63 billion in 2013.In calculating total investment for 2013,national income accountants would:

• A) decrease it by $75 billion.
• B) increase it by $63 billion.
• C) decrease it by $12 billion.
• D) increase it by $138 billion.

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Definitions:

Macro Division

A segment within a company or industry that focuses on the broad, overall management and strategies rather than individual components or products.

ABC Corporation

A placeholder name often used to represent a generic, hypothetical company.

Service Department Cost

Costs associated with departments that do not directly produce goods but provide essential support services within a company.

Super Division

A unit or segment within a larger organization that exceeds normal expectations or performances.