Which of the following would be included as investment in the GDP accounts?
A)the government buys goods from another country
B)someone buys stock in an American company
C)a firm increases its capital stock
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Investment in the GDP accounts refers to additions to a country's capital stock. This includes investments in machinery, equipment, and other physical assets used to produce goods and services. Option A refers to government expenditures on imported goods, which are not included in GDP. Option B relates to the purchase of existing stocks, which does not involve the creation of new capital goods. Option C relates to the formation of new capital goods, which is included in GDP as investment.

Which of the Following Would Be Included as Investment in the GDP