Investment, as a part of GDP, includes:
A. spending on productive inputs such as stocks, bonds, and other types of financial instruments.
B. any goods that are bought by firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them.
C. consumption goods that are purchased by households.
D. any item you buy that you are looking for a return on over time.
B. any goods that are bought by firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them.
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Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?
What will be an ideal response?
Proprietorships are
A) the most common form of business organization in the country. B) responsible for most of the profits in the country. C) generally large relative to other business organizations. D) easy to form but difficult to dissolve.