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When Economists Speak of Investment, They Are Speaking of

Question 24

Multiple Choice

When economists speak of investment, they are speaking of

A) the part of GDP used by households for current use.
B) the part of GDP, past and present, that has been set aside to add to productive capacity.
C) the part of GDP captured in the computation of the dollar value of goods but not services.
D) the part of GDP that the government devotes to the construction of roads, airports, and the like.
E) the part of current GDP used by business to add to productive capacity and by households to add to their stock of new houses.

Correct Answer: