Stocks and bonds:
a. Are both components of gross private domestic investment.
b. Are not a part of gross private domestic investment, because to include them would be double counting a nation's assets and liabilities.
c. Are not a part of gross private domestic investment, because to include them would be double counting a nation's personal consumption and investment.
d. Are not a part of gross private domestic investment, because they are a part of financial services, which are a separate component of GDP.
e. None of the above.
.B
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Which of the following accurately describes the Fed's inflation target?
A) It is implicit rather than explicit. B) It seeks to maintain an average inflation rate of 2% per year. C) It seeks to keep inflation at 2% all the time. D) Its goal is to achieve zero inflation.
The primary deficit is
A) government spending minus interest on the debt. B) government spending minus net tax revenues. C) government spending plus interest on the debt minus net tax revenues. D) government spending plus net tax revenues minus interest on the debt. E) interest on the debt minus net tax revenues.