Which of these is included in gross private domestic investment?
A) highway construction by a government contractor
B) the purchase of a new TV by a household
C) purchases of common stock by investors
D) an increase in business inventories

Question

Quizplus · Accepted Answer

Gross private domestic investment includes business investment in inventories, as well as purchases of capital goods like machinery and equipment. A, B, and C are not considered part of gross private domestic investment. Highway construction by a government contractor is classified as government spending, the purchase of a new TV by a household is considered consumption, and purchases of common stock by investors is classified as financial investment.

Which of These Is Included in Gross Private Domestic Investment