Given the following annual data, answer questions A through C.
|Billions of Dollars|
|New residential construction||$500|
|Purchases of existing homes||250|
|Sales value of newly issued stocks and bonds||600|
|New physical capital||800|
|Household purchases of new furniture||50|
|Net change in firms' inventories||100|
|Production of new intermediate goods||700|
a. What is the value of gross private domestic investment (GPDI)?
b. What is the value of net investment?
c. Are any intermediate goods included in the measure of gross investment?
Investment spending is part of national income accounting. Investment spending is the purchase of goods that are going to be used to produce other goods. Thus, investment spending includes new residential property purchases, new machines and equipments and net changes in inventories of the firms.
Answer and Explanation:
In economics, investment is the purchase of goods that will be used in further production. Investment includes purchases of new physical capital, new...
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from Introduction to Business: Homework Help ResourceChapter 24 / Lesson 13