In GDP Measurement,Investment Spending Includes

question 5

Multiple Choice

In GDP measurement,Investment spending includes

• A)spending by individual households on automobiles and durable goods
• B)spending by businesses on labor resources
• C)changes in business inventories
• D)spending by government on salaries
• E)spending by households on stocks and bonds

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Definitions:

CCA Rate

Capital Cost Allowance Rate; a percentage used to calculate the yearly depreciation of tangible property for tax purposes in Canada.

Half-Year Rule

CRA’s requirement to figure CCA on only one-half of an asset’s installed cost for its first year of use.

Depreciation Expense

The process of charging a portion of the cost of an asset to expense over its expected useful life, reflecting the asset’s consumption or wear and tear.

Capital Spending

Expenditures by a company on physical assets such as buildings, equipment, or machinery, intended to improve its long-term operations.