Which of the following is not considered to be part of gross investment?
A)the purchase of a lathe by the Ajax Manufacturing Company
B)the purchase of 100 shares of BMO by a retired business executive
C)the construction of a suburban housing project
D)the building of a nursery school
E)the increase in inventories by an auto company

Question

Quizplus · Accepted Answer

Gross investment refers to the total amount of investment in physical and non-physical assets, such as machinery, equipment, buildings, and inventories. However, the purchase of stocks or bonds, such as in option B, does not involve any physical assets and is thus not considered a part of gross investment.

Which of the Following Is Not Considered to Be Part