All of the following are components of investment except:
A) increases in plant and equipment.
B) inventory expansion.
C) residential housing construction.
D) purchases of stocks and bonds.

Question

Quizplus · Accepted Answer

Purchases of stocks and bonds are considered financial investments rather than components of investment in the context of gross domestic product (GDP) calculations. Increases in plant and equipment, inventory expansion, and residential housing construction directly contribute to the physical capital stock of an economy, thus are considered components of investment.

All of the Following Are Components of Investment Except