Question

Significance of inventory investment???

Answer 1

Hey mate here is your answer

Subject-Matter of Inventory Investment: Although inventory investment is a very small part of total business investment, it is of considerable importance to the economy of a country because fluctuations of such investment causes business cycles. That investment is the most volatile component of GDP is true.

Hope this answer will help you!!

Answer 2

Heya.....

Inventory investments.....

*** Change in inventory stock during the year is called an inventory investment...

That stock is....
Raw materials..
Semi finished goods...
Finished goods....

@@ It's significances are.....

** It ensures uninterrupted supply of inputs in production..

** With the case of excess demand producer can increase its production easily....

** It avoid daily to daily purchases of inputs...