In an economy, the value of inventories rose from $275 billion in 2020 to $300 billion in 2021.In calculating the total investment for 2021, national income accountants would increase it by $25 billion.

Question

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The value of inventories is included in the investment component of national income accounting. Therefore, the increase in inventory value by $25 billion in 2021 would be considered an increase in investment and would be added to the total investment for the year.

In an Economy, the Value of Inventories Rose from $275