Cassie purchases 1,000 shares of a mutual fund for $1,000. Cassie's purchase of these shares contributes $1,000 to which magnitude in the identity Y = C + I + G?
A)C
B)I
C)G
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Cassie's purchase of mutual fund shares is a financial transaction and does not directly contribute to consumption (C), investment (I), or government spending (G) in the GDP identity.

Cassie Purchases 1,000 Shares of a Mutual Fund for $1,000