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Bsbwor501 Final Exam

Decent Essays

1. Which of the following would be counted as gross private domestic investment? a. General Motors issues 1 million shares of stock. No. b. Consolidated Construction purchases 1,000 acres of land for a regional shopping center it plans to build in a few years. No, however, the shopping center would be considered gross private domestic investment the year it is built. c. A K-Mart store adds 1,000 T-shirts to its inventory. Yes, this is a change in private inventories. d. Crew buys computers for its office staff. Yes, this is nonresidential equipment. e. Your family buys a house. No, buying a house would not be residential investment. 2. If saving dropped sharply in the economy, what would likely happen to investment? Why? If savings dropped

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