Which of the following is part of gross private domestic investment?
A) purchases of stocks and bonds
B) a decline in consumer debt
C) purchases of hamburgers for a family dinner
D) a positive change in business inventories

Question

Quizplus · Accepted Answer

Gross private domestic investment includes purchases of capital goods by businesses, residential investment, and changes in business inventories. Therefore, a positive change in business inventories is part of gross private domestic investment. Purchases of stocks and bonds are not included, as they are typically considered financial investment rather than economic investment. Purchases of hamburgers for a family dinner are not included, as they are considered consumption expenditures. A decline in consumer debt is not included, as it is a measure of changes in consumer behavior and not a component of gross private domestic investment.

Which of the Following Is Part of Gross Private Domestic