The Investment Component of GDP Measures Spending on

question 174

Multiple Choice

The investment component of GDP measures spending on

• A)financial assets such as stocks and bonds. During recessions it declines by a relatively large amount.
• B)residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively large amount
• C)Financial assets such as stocks and bonds. During recessions it declines by a relatively small amount.
• D)Residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively large amount

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Definitions:

Fixed Standard

Refers to a set benchmark or criterion that remains constant over time and is used for comparison or evaluation purposes.

Devalues Its Currency

A deliberate reduction in the value of a country's currency relative to other currencies, typically by its central bank.

Tourists

Individuals who travel away from their home environments for leisure, adventure, or business, but not for permanent relocation.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade balances or protect domestic industries.