Are stocks and bonds considered part of the investment component of GDP?
What will be an ideal response?
No, stocks and bonds are not part of the investment component of GDP. The investment component of GDP includes the purchase of new capital goods and changes in inventories. Stocks and bonds are not capital goods and are not changes in inventories, so they are not part of investment.
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A market in which there are neither external benefits nor external costs is:
A. efficient. B. inefficient. C. efficient and equitable. D. impossible.
Suppose that the percentage change in demand is -20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?
A. -4% B. 4% C. 100% D. -100%
The production possibilities curve can shift inward when
A) production increases. B) employment increases. C) the stock of productive capital rises. D) a country experiences a natural disaster.
When examining the growth record of any nation
A. no consideration should be given to the change in the average amount of leisure time in the nation. B. we must consider which income groups have benefited most from the growth. C. all that must be examined is increases in per capital real GDP. D. increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted.