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:

Accumulation

The process of gradually increasing or gathering together an amount of something over time.

Inhibition

The psychological process that restrains or controls an individual's thoughts, emotions, or actions.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Situational Demands

External pressures or circumstances that necessitate a response or adjustment from an individual or group.