Which of the following is true?
A)Purchases of stock are included as part of investment in the national income accounts.
B)Fixed investments include all spending on capital goods, as well as residential construction.
C)Investment spending is the least volatile category of GDP.
D)All of the above are true.

Question

Which of the following is true?
A)​Purchases of stock are included as part of investment in the national income accounts.
B)​Fixed investments include all spending on capital goods, as well as residential construction.
C)​Investment spending is the least volatile category of GDP.
D)​All of the above are true.

Quizplus · Accepted Answer

Fixed investments include spending on capital goods, such as machinery, equipment, and structures, as well as residential construction. Purchases of stock are not part of investment in the national income accounts. Investment spending is typically more volatile than other categories of GDP, such as consumption and government spending. Therefore, option A and C are incorrect.

Which of the Following Is True