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

Question

Quizplus · Accepted Answer

B is false because consumption includes spending on both durable goods and services. C is also false because investment includes both fixed investment and inventory investment.

Which of the Following Statements Is False