Which One of the Following Is Not an Example of Investment

question 20

Multiple Choice

Which one of the following is not an example of investment in the expenditure approach to measuring GDP? General Motors

• A)buys a new auto stamping machine.
• B)adds 500 new cars to inventories.
• C)buys shares in another company.
• D)builds another assembly plant.
• E)replaces some worn-out stamping machines.

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Definitions:

Price Increase

A rise in the cost or value of goods and services, which can affect consumer behavior and inflation rates.

Consumers

Individuals or groups who use goods and services produced within an economy.

Producers

Producers are individuals or entities that create goods or services for sale or exchange, typically within an economy.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine exchange rate effects on goods' prices.