Which of the following is part of gross private domestic investment?
A) Purchases of stocks and bonds
B) A decline in consumer debt
C) Purchases of hamburgers for a family dinner
D) A positive change in business inventories

Question

Quizplus · Accepted Answer

Gross private domestic investment includes investments in fixed assets (such as buildings and equipment) and changes in inventories by businesses. Choice A is incorrect because purchases of stocks and bonds are considered financial investments rather than gross private domestic investment. Choice B is incorrect because a decline in consumer debt would not be classified as an investment at all. Choice C is incorrect because the purchase of hamburgers for a family dinner would be considered consumption expenditure rather than an investment.

Which of the Following Is Part of Gross Private Domestic