How do declines in business inventories enter national income accounts?
A)negatively, in the net export category
B)negatively, in the investment category
C)positively, in the profits category
D)negatively, in the consumption category

Question

Quizplus · Accepted Answer

Declines in business inventories are counted as negative investment in the national income accounts. This is because firms are selling off stored goods rather than investing in new goods.

How Do Declines in Business Inventories Enter National Income Accounts