The Investment Component of GDP Includes All of the Following

question 89

Multiple Choice

The investment component of GDP includes all of the following except:

• A) purchases of corporate stock.
• B) spending on new plants and equipment.
• C) purchases of new housing by households.
• D) changes in business inventories.

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Definitions:

Gradual Decline

A steady and slow decrease in condition, quality, or capacity over time, often observed in physical and cognitive functions with aging.

Kubler-Ross

A model proposed by Elisabeth Kübler-Ross outlining five stages of grief: denial, anger, bargaining, depression, and acceptance.

Insurance Money

Funds received from an insurance policy, which are typically paid out upon certain events such as accidents, health issues, or death.

Denial

A psychological defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.