Inventory investment can be defined as
A) changes in the stocks of finished goods and raw materials.
B) the system of accounts that is used to count certain goods.
C) goods that must be excluded from the GDP to avoid double counting.
D) the value of monetary transactions by businesses.

Question

Quizplus · Accepted Answer

Inventory investment refers to changes in the stocks of finished goods and raw materials held by businesses, such as goods produced but not yet sold or raw materials purchased but not yet used in production. It does not refer to a system of accounts or the exclusion of goods from GDP, and it is not limited to monetary transactions.

Inventory Investment Can Be Defined as