Gross private domestic investment
A) excludes all investment in the United States by foreign firms.
B) includes all capital in the United States.
C) includes net additions to the capital stock plus all new corporate stocks and bonds.
D) includes business expenditures on new factories, tools, and machinery.

Question

Quizplus · Accepted Answer

Gross private domestic investment includes business expenditures on new factories, tools, and machinery, as well as other types of investment in the United States. It does not include investment by foreign firms, and it is limited to domestic investment, rather than including all capital in the United States. Net additions to the capital stock and issuance of new corporate stocks and bonds may be included in gross private domestic investment, but these are not the only components.

Gross Private Domestic Investment