Gross private domestic investment is all purchases of newly produced business capital goods and buildings
A) minus the change in business inventories.
B) plus the change in business inventories plus residential construction.
C) plus fixed investment minus inventory investment.
D) plus purchases of capital goods produced in previous years to replace any depreciated capital goods.
B
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During 1990, a Hershey candy bar cost $.85. By 2007, the same Hershey candy bar cost $1.25. If the CPI was 130.7 in 1990 and 180.5 in 2007, the price of the 1990 Hershey candy bar in 2007 prices is
A) greater than the price of the 2007 Hershey candy bar. B) less than the price of the 2007 Hershey candy bar. C) equivalent to the price of the 2007 Hershey candy bar. D) perhaps greater than, perhaps less, or perhaps the same depending on whether the CPI in 2007 has been adjusted to reflect 2007 prices. E) not able to be determined given the information in the question.
While you and your roommate are eating your nightly Hamburger Helper meal, your roommate says "I'll never eat Hamburger Helper again once I graduate and start making some real money!" In your roommate's eyes, Hamburger Helper is currently
A) a normal good. B) an inferior good. C) a bad. D) a waste of his money.