Declines in business inventories enter national income accounts:
a. negatively in the consumption category.
b. negatively in the investment category.
c. negatively in the net export category.
d. positively in the profits category.
Question 2
In the country of Marzipana, total consumption in Year 1 was 56,000 million and in Year 2 was 60,000 million. It has been observed that each time disposable income changes in this country by 100, consumption changes by 70 . Using this information compute the change in disposable income from Year 1 to Year 2.
a. Disposable income increased by 2,800 million in Year 2.
b. Disposable income decreased by 2,000 million in Year 2.
c. Disposable income increased by 2,000 million in Year 2.
d. Disposable income increased by 4,500 million in Year 2.
e. Disposable income decreased by 2,600 million in Year 2.
