All of the Following Are Included in Gross Private Domestic

question 59

Multiple Choice

All of the following are included in gross private domestic investment expenditure EXCEPT

• A)a business's purchase of a fleet of cars.
• B)a business's purchase of another company's stock.
• C)a retail store's purchase of shoes to add to its inventory.
• D)a household's purchase of a new house.

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Definitions:

Buying Inventory

The process of purchasing goods or materials that a company plans to sell to its customers, which is a critical component of managing supply and demand.

Equity Security

A financial instrument representing ownership interest in a company, such as stocks.

Preferred Stock

A type of stock that gives holders priority for dividend payments over common stockholders and may carry other privileges, but usually does not have voting rights.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, typically seen with corporate income taxed at both the corporate and shareholder levels.