Question 5 3 points The investment spending category of gros

Question 5 (3 points) The investment spending category of gross domestic product (GDP) does NOT include purchases of new equipment. purchases of stocks and bonds. purchases of new homes. the value of changes to business inventory purchases of computer software. Save Question 6 (3 points)

Solution

The investment spending category of GDP includes two types of spending which are spending fixed investment goods or inventory spending. Fixed investment goods includes the spending on goods which have a benefit over a greater time period. Inventory spending includes the change in the values of goods which are present in the inventory of the firm. Purchase of computer software is referred to as consumer spending since it can be referrred to as the purchase of personal services.