Which of the Following Items Is Included in Gross Private

question 15

Multiple Choice

Which of the following items is included in gross private domestic investment?

• A) An increase in the level of government spending on new schools
• B) The purchase of medical equipment by the Marines for use in its field hospitals
• C) An increase in business inventories
• D) An increase in the value of corporate stocks sold during the year

---

Definitions:

P/E Ratios

Price-to-Earnings Ratio, a valuation metric that compares the price of a stock to the company’s earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Company Growth

Refers to the increase in size, revenue, or market share of a company over time.

Ceteris Paribus

A term from Latin that signifies "with all other factors remaining the same," employed in the field of economics to examine the impact of a single variable by keeping the rest unchanged.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out to shareholders.