Suppose that inventories were $40 billion in 2007 and $50 billion in 2008. In 2008, accountants would:

a) add $10 billion to other elements of investment in calculating total investment.
b) subtract $10 billion from other elements of investments in calculating total investment.
c) add $45 billion (= $90/2) to other elements of investment in calculating total investment.
d) subtract $45 billion (= $90/2) from other elements of investment in calculating total investment.

ANSWER:

a) add $10 billion to other elements of investment in calculating total investment.