An Example of an Increase in Gross Private Domestic Investment

question 56

Multiple Choice

An example of an increase in gross private domestic investment spending that also increases GDP is when

• A)a family sells its home because of a transfer.
• B)a farmer buys a used tractor.
• C)inventories of new cars accumulate on the lots of car dealers.
• D)government increases spending on infrastructure.

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Definitions:

Members

Individuals who belong to a group, organization, or a body such as a legislative body or club.

Select Committee

A temporary legislative committee established for a specific purpose, often to conduct investigations or study complex issues.

Legislative Committee

A small group of lawmakers within a legislative body tasked with handling specific duties, such as reviewing legislation, conducting hearings, and making recommendations to the larger assembly.

Special Purpose

A specific, defined objective or project that an entity is created to achieve or address, often seen in organizations, trusts, or government programs.