Money spent on the purchase of a new house is included in the GDP as a part of:
A)the consumption of private fixed capital.
B)personal consumption expenditures.
C)personal saving.
D)investment.

Question

Quizplus · Accepted Answer

Money spent on the purchase of a new house is considered as investment in the economy as it adds to the stock of capital goods in the economy. Therefore, it is included in the GDP as a part of investment.

Money Spent on the Purchase of a New House Is