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

Question

Quizplus · Accepted Answer

Spending on financial assets such as stocks, bonds, and mutual funds is not counted as part of GDP because their purchase is not spending on goods or services that directly contribute to the production of new goods and services. GDP only includes final goods and services, not intermediate goods, and financial assets are not considered final goods.

Spending on Financial Assets ________ Counted as Part of GDP