Asked by Sterline Pierre on Jun 18, 2024
Verified
Statement I.Inventory investment can be negative.
Statement II.Inventory investment in the U.S.fluctuates a great deal from one year to the next.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Inventory Investment
Inventory Investment is the change in the level of inventory stocks held by businesses over a certain period, which can affect overall economic output.
Fluctuates
Refers to the variation in the value or level of a variable over time.
- Understand the principle of inventory investment and its fluctuations.
Verified Answer
JM
Jayla MorrisJun 20, 2024
Final Answer :
C
Explanation :
Statement I is true because inventory investment can be negative if a company sells more goods than it produces, or if it reduces its inventory levels.
Statement II is also true because inventory investment in the U.S. is affected by various factors such as changes in consumer demand, production levels, and global economic conditions. Therefore, it can fluctuate greatly from year to year.
Statement II is also true because inventory investment in the U.S. is affected by various factors such as changes in consumer demand, production levels, and global economic conditions. Therefore, it can fluctuate greatly from year to year.
Learning Objectives
- Understand the principle of inventory investment and its fluctuations.