When Calculating GDP from the Expenditure Side,which of the Following

question 37

Multiple Choice

When calculating GDP from the expenditure side,which of the following is true of the investment component,I_a?

• A)It excludes expansions of existing factories.
• B)It only includes business fixed investment.
• C)It includes the transfer of houses between individuals.
• D)It includes changes in inventories.
• E)It only includes decumulation of inventories.

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Definitions:

Earnings Ability

A company's potential to generate profits from its operations over time, indicating its long-term financial viability and success.

Functional Currency

The primary currency used by a business or entity in its financial statements, reflecting the principal economic environment in which it operates.

Competitive Forces

The external factors that influence the competitive environment of a business, including competitors, buyers, suppliers, potential entrants, and substitute products.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transactions.