The Following Table Provides Data for an Economy in a Certain

question 133

Multiple Choice

The following table provides data for an economy in a certain year. $$\begin{array} { l l } \text { Consumption expenditures } & 50 \\\text { Imports } & 40 \\\text { Government purchases of goods and services } & 20 \\\text { Construction of new homes and apartments } & 30 \\\text { Sales of existing homes and apartments } & 40 \\\text { Exports } & 50 \\\text { Government payments to retirees } & 10 \\\text { Household purchases of durable goods } & 20 \\\text { Beginning-of-year inventory } & 10 \\\text { End-of-year inventory } & 20 \\\text { Business fixed investment } & 30\end{array}$$ Given the data in the table, compute the investment component of GDP.

• A) 30
• B) 40
• C) 60
• D) 70

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Definitions:

Preferred Stock

A type of stock that grants holders priority over common stockholders in terms of dividend payments and assets in the event of liquidation, often with fixed dividend rates.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the company.

Unissued Stock

Shares that have been authorized by a company's charter but have not been issued or sold to investors.