Which of the Following Is Not Included in Gross Private

question 36

Multiple Choice

Which of the following is not included in gross private domestic investment spending?

• A)Household spending on residential construction.
• B)Spending on business inventories.
• C)Household spending on durable goods.
• D)Business spending on plant and equipment.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, considered the cost of equity capital.

Security Market Line

A representation in financial models that shows the relationship between the risk of an investment and its expected return.

Dividend Payout Ratio

A metric that measures the portion of a company's earnings paid out to shareholders as dividends.

Market Rate of Return

The average return investors expect to earn from an investment in the general market.