How inventories declined affect size of gross investment
Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2010. How would this affect the size of gross private domestic investment and gross domestic product in 2010? Explain.
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Federal Land Bank (FLB) filed an action to foreclose a mortgage on property owned by Howard and Harriet Franklin. Before trial, FLB's attorney wrote to the Franklin's attorney inviting settlement offers.
Suppose inventories declined by $1 billion during 2010. How would this affect the size of gross private domestic investment and gross domestic product in 2010? Explain.
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