Which of the following is an example of the gross private domestic investment component of GDP?
A)You buy a share of GM stock.
B)GM buys a new drill press.
C)You put money into your savings account.
D)You put money into your checking account.

Question

Quizplus · Accepted Answer

Gross private domestic investment includes any investment made by businesses within the country, such as purchasing new equipment, buildings, or software. GM buying a new drill press would fall under this category. A) buying a share of GM stock would be considered a financial transaction and not part of GDP. C) and D) putting money into savings or checking accounts does not count towards GDP as it does not represent a purchase of goods or services.

Which of the Following Is an Example of the Gross