This is a component of GDP that comes from the expansion of existing businesses and creation of new businesses.Select one:a. Governmentb. Net Exportsc. Consumptiond. Investments
Question
This is a component of GDP that comes from the expansion of existing businesses and creation of new businesses.Select one:a. Governmentb. Net Exportsc. Consumptiond. Investments
Solution
The correct answer is d. Investments. This component of GDP includes business investments in equipment and buildings, residential investment (like new houses), and changes in business inventories. It is through these investments that businesses expand and new businesses are created.
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