Which of the following is not a component of investment spending?
A)spending by firms on equipment
B)the purchase of 1000 shares of corporate stock
C)residential construction
D)changes in inventories

Question

Quizplus · Accepted Answer

The purchase of 1000 shares of corporate stock is not considered a component of investment spending as it represents the transfer of ownership of an already existing asset rather than the creation of new physical capital. The other options listed (spending by firms on equipment, residential construction, and changes in inventories) are all examples of investment spending.

Which of the Following Is Not a Component of Investment