The "investment" component of aggregate demand will include all of the following except
A)expenditures of business firms on new plants.
B)expenditures of business firms on new equipment.
C)resales of existing physical assets.
D)household spending on new homes.

Question

Quizplus · Accepted Answer

Resales of existing physical assets, such as used machinery or previously owned buildings, do not represent new investment spending. The other options all involve new investments by business firms or households.

The "Investment" Component of Aggregate Demand Will Include All of the Following