Business Inventories Decline, GDP RisesReal gross domestic product (GDP) rose in the fourth quarter, led by exports. Consumer spending also increased. Business investment in plant and equipment expanded for the fourth consecutive quarter. Businesses reduced inventories by $5 billion after strong build-ups in the two previous quarters.Source:

The

Daily,

Statistics Canada, February 28, 2011

Business inventories fall when real GDP rises because ______.

A.

inventories are falling from above target to their target levels

B.

firms put more production time into producing exports

C.

firms put more production time into producing consumption goods and services

D.

both B and C are correct