Sales and inventories of existing homes in the circular flow of expenditure and income and GDP. O A. appear as a flow of investment from firms through goods markets to households; increase O B. appear as a flow of investment from households through factor markets; increase O C. appear as a flow of consumption expenditure from households to firms through financial markets; do not influence O D. are not part of current expenditure, so they do not appear; do not influence O E. are part of the flow of investment, so they do appear; increaseNew U.S. home sales surged Purchases of new US. homes surged in December and 2015 was the best year for housing since 2007. Existing-home sales also increased in the best year since 2006. The inventory of existing homes on the market was smaller than demand. Source: Bloomberg, January 28, 2016 Where do sales and inventories of existing homes appear in the circular ow of expenditure and income? Explain how an increase in sales of existing homes and a low inventory of existing homes affects real GDP