Which of the Following Statements Regarding Housing Expenditures in the National

question 75

Multiple Choice

Which of the following statements regarding housing expenditures in the national accounts is correct?

• A)Owner-occupied housing is counted as investment by imputing the value of the housing services enjoyed by the owner.
• B)Rental payments for houses are counted as part of consumption.
• C)The provision of new public housing by the government is classified as private investment.
• D)New residential construction is classified as consumption.
• E)The cost of a home purchased from its previous occupant is part of investment.

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Definitions:

Goodwill Impairment

The decrease in value of a company's goodwill, indicating that the value of acquired assets has fallen below their book value.

Fair Value

The amount to be banked from asset liquidation or spent on liability transition in an orderly market dealing at the time for calculating value.

Functional Currency

It's the currency of the primary economic environment in which an entity operates and generates cash flows.

Exchange Rates

The price at which one currency can be exchanged for another, influencing international trade and investments.