Which of the Following Is NOT Included in the Flow

question 316

Multiple Choice

Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?

• A) purchases of corporate stock
• B) spending on capital goods
• C) inventory investment
• D) fixed investment

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Definitions:

Asset Improvements

Expenditures made to increase the service life, operating efficiency, or productive capacity of an asset.

Ordinary Maintenance

Routine upkeep and repairs to keep equipment and facilities in working order, as opposed to major renovations or upgrades.

Accumulated Depreciation

The total amount by which an asset's value has been written down over time to reflect wear, tear, or obsolescence.

Trade-In Allowance

The amount credited to the buyer by a seller for the value of a traded item, reducing the cost of the new purchase.