The purchase and sale of financial instruments is not included in calculations of investment spending because ________.
A)not all of these transactions are reported to the federal government
B)both foreign and domestic economic agents can engage in the described transactions,but only U.S.economic agents can engage in investment
C)they do not necessarily lead to a change in the amount of output produced in the United States
D)they are already including in consumption spending

Question

Quizplus · Accepted Answer

Investment spending is the purchase of new physical assets such as buildings, equipment, and machinery which directly contribute to the production of goods and services. Transactions involving financial instruments such as stocks, bonds, and currencies do not necessarily lead to a change in the amount of output produced in the United States and are therefore not included in calculations of investment spending.

The Purchase and Sale of Financial Instruments Is Not Included