Which of the following items is included in gross private domestic investment?
A) An increase in the level of government spending on new schools
B) The purchase of medical equipment by the Marines for use in its field hospitals
C) An increase in business inventories
D) An increase in the value of corporate stocks sold during the year

Question

Quizplus · Accepted Answer

Gross private domestic investment includes any increase in business inventories.

Answer: D 
 Gross private domestic investment also includes any increase in the value of corporate stocks sold during the year.

A and B are not included in gross private domestic investment because A is government spending and B is government investment, meaning they are not part of the private sector.

Which of the Following Items Is Included in Gross Private