For the purpose of calculating GDP, investment is spending on
A)stocks, bonds, and other financial assets.
B)real estate and financial assets such as stocks and bonds.
C)capital equipment, inventories, and structures, including household purchases of new housing.
D)capital equipment, inventories, and structures, excluding household purchases of new housing.

Question

Quizplus · Accepted Answer

Investment, in the context of GDP calculation, refers to spending on capital goods including capital equipment, inventories, and structures. It also includes household purchases of new housing, distinguishing it from financial investments like stocks and bonds.

For the Purpose of Calculating GDP, Investment Is Spending on