Changes in inventory are included in the investment component of GDP

________ increases households' saving

A) A decrease in the real interest rate B) A tax cut that increases disposable income C) Higher expected future income D) A stock market boom that increases the purchasing power of households' wealth

When firms incur unplanned inventories, they typically

a. build new plants. b. call for more government spending. c. hire more workers and increase production. d. lay off workers and reduce production.