multiple choice question the purchase of financial assets such as stocks and bonds is considered part of…
multiple choice question the purchase of financial assets such as stocks and bonds is considered part of investment spending in calculating gdp. is considered a consumption expenditure in calculating gdp. is not considered part of investment spending in calculating gdp.
Answer
Brief Explanations:
In GDP calculation, investment spending refers to spending on new capital goods like machinery, buildings, etc. The purchase of financial assets such as stocks and bonds is just a transfer of ownership of existing assets and does not directly contribute to the production of new goods and services. So it is not part of investment spending in GDP calculation.
Answer:
O is NOT considered part of investment spending in calculating GDP.