In the Calculation of GDP, the Value of a New

question 14

Multiple Choice

In the calculation of GDP, the value of a new house constructed by a firm is included in:

• A) personal consumption expenditures.
• B) personal saving.
• C) the depreciation of capital.
• D) private investment.

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Definitions:

Securities

Instruments of finance that denote a share in a company available on the public stock exchange, an obligation owed to investors by governments or businesses (bonds), or the assignment of ownership via options.

Investment Banks

Financial institutions that provide various services including underwriting, acting as intermediaries in mergers and acquisitions, and facilitating securities trading.

Direct Transfer

A method of moving funds or assets from one account or entity directly to another without any intermediaries.

Newly Issue Securities

Newly issued securities are financial instruments that have been recently launched into the market by a public or private entity, including stocks and bonds.