Question

why is change in stock ( inventory) is considered as a part of investment expenditure?​

Answer 1

Answer:

Changes in inventories are the smallest component of the GDP, usually less than 1% of GDP but they are much more important than their absolute size. ... As the change in inventories is a flow equal to the change in the stock of unsold goods, they are a form of investment.

Changes in inventories are the smallest component of the GDP, usually less than 1% of GDP but they are much more important than their absolute size. ... As the change in inventories is a flow equal to the change in the stock of unsold goods, they are a form of investment.Explanation:

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