If you buy stocks and bonds, the dollar value of those stocks and bonds is
A) included in Gross Domestic Product (GDP) under investment.
B) included in Gross Domestic Product (GDP) under consumer expenditures.
C) not included in calculating Gross Domestic Product (GDP) for they merely represent a transfer of ownership.
D) included in Gross Domestic Product (GDP) if the stocks and bonds were issued by business firms but not if they were issued by governments.

Question

Quizplus · Accepted Answer

Stocks and bonds merely represent a transfer of ownership and do not directly contribute to the production of goods or services, thus they are not included in GDP calculations.

If You Buy Stocks and Bonds, the Dollar Value of Those