Inventory investment occurs when
A) grocers sell stocks of canned goods off their shelves.
B) individuals invest in an invention.
C) shopkeepers check their inventories.
D) automobile dealers add to their stocks of unsold cars.

Question

Quizplus · Accepted Answer

Inventory investment refers to the purchase of goods by firms to add to their existing stock of unsold goods. Automobile dealers adding unsold cars to their stock is an example of inventory investment. Therefore, option D is the correct choice.

Inventory Investment Occurs When