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Identify the Impact of an Increase in the Inventory Stock

Question 8

Multiple Choice

Identify the impact of an increase in the inventory stock during a year.


A) Consumption spending will decrease thereby reducing the GDP.
B) The GDP of the country should decrease by the amount of the increase in inventory.
C) The capital investment in the country will increase.
D) Neither the capital investment nor the GDP will change.
E) The GDP of the country should increase by the amount of the increase in inventory.

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