Which of the Following Expenditures Is Not Included in Fixed

question 12

Multiple Choice

Which of the following expenditures is not included in fixed investment spending (I) ?

• A) Ford increases its inventories of unsold automobiles.
• B) Dell Computer buys a new robot for its assembly line.
• C) Holden builds a new factory.
• D) An individual buys a newly built home.
• E) All of the above.

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Definitions:

Chapter 13

A section of the U.S. Bankruptcy Code allowing individuals with a steady income to reorganize their debts and pay them off over time.

Debts

Money, goods, or services owed by one party to another under the terms of a contract or agreement.

Garnishments

A legal process whereby a creditor can collect what a debtor owes by requiring a third party to turn over the debtor’s property or wages.

Creditors

Individuals or institutions that lend money or extend credit and are owed repayment by debtors.