Which of the following would not be included in the expenditure category called investment expenditures?
A)spending on new houses
B)a purchase of shares of preferred stock
C)a purchase of a copy machine by FedEx Office
D)the cars held in inventory on a local Ford dealer's lot

Question

Quizplus · Accepted Answer

Investment expenditures in economic terms refer to spending on capital goods, not financial investments like stocks. Purchases of shares of preferred stock are financial transactions and do not count as investment in the context of GDP calculations.

Which of the Following Would Not Be Included in the Expenditure