Gross private domestic investment includes business: a) purchases of capital goo

Question

Gross private domestic investment includes business: a) purchases of capital goods, all new construction, andpurchases of consumer durable goods b) purchases of capital goods, all new construction, andinventory investment c) purchases of capital goods, all new commercialconstruction, and inventory investment d) purchases of capital goods, all new residental constructionand inventory investment e) purchases of all types of durable goods, all newconstruction, and inventory investment Gross private domestic investment includes business: a) purchases of capital goods, all new construction, andpurchases of consumer durable goods b) purchases of capital goods, all new construction, andinventory investment c) purchases of capital goods, all new commercialconstruction, and inventory investment d) purchases of capital goods, all new residental constructionand inventory investment e) purchases of all types of durable goods, all newconstruction, and inventory investment

Explanation / Answer

Gross Private Domestic Investment: It includes 3 types ofinvestment

Non residential investment: Expenditures by firms for machines,tools and so on...

Residential Investment: Includes expenditures by households andfirms on apartments, buildings, new factories...

Change in inventories: The change of firm inventories in a givenperiod. (Inventory: is the goods that is produced by firms but thegoods that are kept to sold later.)

d) purchases of capital goods, all newresidental construction and inventory investment

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.