Business inventories increase when firms produce ________.
A. less than they sell, and the inventory increase is subtracted from GDP
B. more than they sell, and the inventory increase is subtracted from GDP
C. more than they sell, and the inventory increase is added to GDP
D. less than they sell, and the inventory increase is added to GDP
Answer: C
You might also like to view...
Deficits are a burden on future generations if they
A) cause higher rates of inflation to occur. B) are not used for government capital formation. C) cause national saving to fall. D) are always a primary government deficit.
If Wisconsin cheddar cheese sells for $3.00 per pound in the United States and for 27.90 pesos in Mexico, what is the exchange rate between the dollar and the peso (assuming PPP holds)?
A. $1 = 2.79 pesos B. $1 = 7.90 pesos C. $1 = 9.30 pesos D. $1 = 27.90 pesos