If a firm buys a dozen new cars for its sales team, this would be included in:

Question

Quizplus · Accepted Answer

Buying new cars for a sales team would be considered an investment in fixed assets and therefore falls under gross private fixed investment. Consuming expenditures refer to purchases made for immediate consumption, such as office supplies or food, and investment inventories refer to purchases of inventory for resale. Gross private fixed consumption is not a recognized economic term.

If a Firm Buys a Dozen New Cars for Its