In an economy, the value of inventories rose from $100 billion in 2016 to $150 billion in 2017.In calculating the total investment for 2017, national income accountants would:
A)decrease it by $50 billion.
B)increase it by $50 billion.
C)decrease it by $100 billion.
D)increase it by $150 billion.

Question

Quizplus · Accepted Answer

The increase in inventories from $100 billion to $150 billion represents an increase of $50 billion, which is considered an investment in national income accounting.

In an Economy, the Value of Inventories Rose from $100