If you were to determine net domestic product (NDP) through the expenditures approach, the correct measure of investment spending to use ismultiple choice 2net private domestic investment because it includes depreciation.gross private domestic investment because it excludes depreciation.gross private domestic investment because it includes depreciation.net private domestic investment because it excludes depreciation.
Question
If you were to determine net domestic product (NDP) through the expenditures approach, the correct measure of investment spending to use ismultiple choice 2net private domestic investment because it includes depreciation.gross private domestic investment because it excludes depreciation.gross private domestic investment because it includes depreciation.net private domestic investment because it excludes depreciation.
Solution
The correct measure of investment spending to use is gross private domestic investment because it includes depreciation.
Similar Questions
When gross private domestic investment exceeds depreciation, it can be concluded that:Multiple Choicenet investment is positive.net investment is negative.the economy is exporting more than it imports.the economy is importing more than it exports
Which of the following is equal to net investment?Multiple choice question.Gross investment minus depreciationDepreciation plus GDPGDP minus final salesGross investment minus final sales
What is net private domestic investment?Multiple choice question.The total amount of private investment purchases, whether new or previously existingThe total amount of new private investment purchasesThe wear and tear on private investmentWhat is left over from total new private investment after depreciation
Which of the following is part of the expenditure approach to measuring national income?Multiple choice question.RentWagesInvestmentProfits
b. Gross domestic product does not include the value of the stocks and bonds bought and sold because these transactions are considered multiple choice 2economic investment, but should be counted as production of final goods and services.economic investment, and should not be counted as production of final goods and services.consumption expenditures, and should not be counted as production of final goods and services.consumption expenditures, but should be counted as production of final goods and services.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.