Using the Expenditure Approach to GDP Accounting, Which of the Following

question 18

Multiple Choice

Using the expenditure approach to GDP accounting, which of the following are included in the investment category?

• A)​the purchase of government bonds
• B)​the purchase of corporate bonds
• C)​the purchase of corporate stocks
• D)​none of the above

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Definitions:

Operating Activities

Business activities related to the day-to-day functions of producing goods, providing services, and selling products.

Paying Taxes

The mandatory financial charge or other levy imposed on an individual or a legal entity by a governmental organization in order to fund government spending and various public expenses.

Cash Outflow

The movement of money out of a business, resulting from expenses or investments.

Accounts Receivable

Outstanding amounts due from clients to a company for products sold or services utilized, awaiting payment.