The investment component of GDP includes:
A)funds in individual retirement accounts.
B)construction of a new steel mill.
C)the sale of shares of Coca-Cola stock.
D)the purchase of a refrigerator by a household.

Question

The investment component of GDP includes:
A)​funds in individual retirement accounts.
B)​construction of a new steel mill.
C)​the sale of shares of Coca-Cola stock.
D)​the purchase of a refrigerator by a household.

Quizplus · Accepted Answer

Investment in the context of GDP refers to business investments in capital goods, such as the construction of new facilities (e.g., a steel mill), rather than financial investments or household purchases of durable goods.

The Investment Component of GDP Includes