ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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any financial asset only.
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additions to inventories only.
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financial assets and inventories only.
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the purchase of new capital goods and additions to inventories.
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Detailed explanation-1: -Gross private domestic investment It is measured without a deduction for consumption of fixed capital (CFC), includes replacements and additions to the capital stock, and excludes investment by U.S. residents in other countries. Related termsGross domestic investment, Gross investment.
Detailed explanation-2: -Gross private domestic investment is the purchase of equipment by firms, the purchase of all newly produced structures, and changes in business inventories.
Detailed explanation-3: -In calculating the tax on net investment income, gross investment income means the total amount of income from interest, dividends, rents, payments with respect to securities loans (as defined in Code section 512(a)(5)), and royalties (including overriding royalties) received by a private foundation from all sources.
Detailed explanation-4: -Gross private domestic investment includes the construction of nonresidential structures, the production of equipment and software, private residential construction, and changes in inventories. The bulk of gross private domestic investment goes to the replacement of depreciated capital.