D You pay a commission to your stock broker for selling some stocks that you

D you pay a commission to your stock broker for

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You purchase 1,000 shares of stock.D.You pay a commission to your stock broker for selling some stocks that you owned.Purchasing a new house to be occupied by the buyer is considered "investment" for national income accountingpurposes.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 02 MediumLearning Objective: 04-02Topic: The Expenditure Method for Measuring GDP74.Investment spending includes spending on:A.consumer durable goods.B.new capital goods.C.services.D.stocks and bonds.New capital goods is the only answer that qualifies as "investment." Consumer durable goods and services areboth consumption items, and stocks and bonds are considered to be savings.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 01 EasyLearning Objective: 04-02Topic: The Expenditure Method for Measuring GDP75.Spending on new capital goods, new homes, and the addition of unsold goods to company inventories isincluded in:A.consumption expenditures.B.investment spending.C.government purchases.D.service spending.Spending on new capital goods, new homes, and the addition of unsold goods to company inventories isincluded in investment spending.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 01 EasyLearning Objective: 04-02Topic: The Expenditure Method for Measuring GDP76.Investment spending includes spending on:A.durables, nondurables, and services.B.stocks, bonds, and other financial instruments.C.capital goods, residential housing, and changes in inventories.D.goods and services by federal, state, and local governments.Spending on new capital goods, new homes, and the addition of unsold goods to company inventories isincluded in investment spending.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 01 EasyLearning Objective: 04-02Topic: The Expenditure Method for Measuring GDP77.The value of goods produced, but unsold, in the current period is:A.excluded from GDP.B.counted in GDP as inventory investment.C.counted in GDP as consumption spending.D.allocated to GDP in future periods when the goods are sold.Inventory is a subtle addition to investment. Sometimes it is an intentional buildup of inventory and sometimes itis the unintentional additions to inventory due to lagging sales.
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AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 01 EasyLearning Objective: 04-02Topic: The Expenditure Method for Measuring GDP
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78.Which of the following would increase the investment component of U.S. GDP?A.You purchase a new clothes washing machine produced in the U.S.B.You purchase a new clothes washing machine produced in France.C.A laundry in Seattle purchases a new clothes-washing machine produced in the U.S.D.A laundry in Mexico purchases a new clothes-washing machine produced in the U.S. Investment must be done by domestic businesses except for owner-occupied new housing.AACSB: Reflective Thinking
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