In an economy,the value of inventories rose from $100 billion in 2012 to $150 billion in 2013.In calculating total investment for 2013,national income accountants would:
A) decrease it by $50 billion.
B) increase it by $50 billion.
C) decrease it by $100 billion.
D) increase it by $150 billion.

Question

Quizplus · Accepted Answer

The increase in inventories from $100 billion to $150 billion represents an increase of $50 billion, which is considered an investment in inventory. Therefore, national income accountants would increase total investment by $50 billion.

In an Economy,the Value of Inventories Rose from $100 Billion