In an economy, the value of inventories was $75 billion in year 1 and $63 billion in year 2. In calculating total investment for year 2, national income accountants would

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The national income accountants would calculate total investment for year 2 by subtracting the value of year 1 inventories from the value of year 2 inventories, which is $63 billion - $75 billion = -$12 billion. This means there was a decrease in inventories and is reflected as a reduction in investment. So, the total investment for year 2 would be decreased by $12 billion.

In an Economy, the Value of Inventories Was $75 Billion