Spending on financial assets_{-------------}counted as part of GDP _{-------------} A)are not; because their purchase is not spending on goods or services B)are; because the cash exchanged represents an expenditure C)are not; because interest must be paid on them D)may be; as long as their value increases E)are; as long as their purchase produces income

Question

Quizplus · Accepted Answer

Spending on financial assets is not counted as part of GDP because it does not represent spending on goods or services, but rather a transfer of ownership.

Spending on Financial Assets-------------counted as Part of GDP -------------

Spending on Financial Assets_{-------------}counted as Part of GDP _{-------------}