Which of the following statements is false?
A) For purposes of computing GDP, the purchases of new residential housing are considered investment although it is undertaken by the household sector.
B) Consumption includes spending on durable goods but not spending on services.
C) Investment includes fixed investment but not inventory investment.
D) b and c
E) a, b, and c

Question

Quizplus · Accepted Answer

Consumption includes spending on both durable goods and services, making statement B false. Investment includes both fixed investment and inventory investment, making statement C false.

Which of the Following Statements Is False