The construction of new housing is considered part of:
A)investment spending.
B)consumption.
C)government purchases of goods and services.
D)private saving.

Question

Quizplus · Accepted Answer

The construction of new housing involves investment in the production of a physical asset that is expected to generate future economic benefits. Therefore, it is considered part of investment spending in macroeconomics, which includes spending on physical capital, such as buildings, machinery, and equipment. Consumption refers to spending on goods and services for immediate use, while government purchases of goods and services are spending by the government sector. Private saving, on the other hand, is the portion of income that is not immediately consumed but set aside for future use.

The Construction of New Housing Is Considered Part Of