When Calculating GDP Using the Expenditure Approach, the Investment Component

question 3

Multiple Choice

When calculating GDP using the expenditure approach, the investment component includes

• A)net investment plus depreciation.
• B)gross investment plus depreciation.
• C)fixed investment minus depreciation.
• D)net investment only.
• E)net investment minus depreciation.

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Definitions:

Unauthorized Signature

A signature placed on a document by someone who does not have the legal authority or permission to sign on behalf of the indicated party.

Warranties

Warranties are assurances provided by a seller regarding the quality, condition, or performance of a product, explicitly stated or implied by law.

Unaccepted Draft

A written order to pay a specified amount that has not been accepted by the entity it is drawn upon, typically in international trade.

Drawee

The party directed by a draft or check to pay the specified amount, typically a bank.