The investment spending component of GDP includes all of the following except:
A) business fixed investment.
B) net foreign investment.
C) residential investment.
D) inventory investment.

Question

Quizplus · Accepted Answer

Net foreign investment is not included in the investment spending component of GDP as it represents the difference between exports and imports and is accounted for separately in the current account of the balance of payments. Business fixed investment, residential investment, and inventory investment are all included in the investment spending component of GDP.

The Investment Spending Component of GDP Includes All of the Following