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Investment V. Indicate which of the following is considered investment and will be included in the investment component when calculating GDP and dene the component

Investment

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V. Indicate which of the following is considered investment and will be included in the investment component when calculating GDP and dene the component of investment spending. For all the expenditures that will not be included in the investment component briey explain the reason. Instruction: Do not rewrite the tasks, put you answers in the following table. (a) rm's expenditures on the construction of a new house; (b) government subsidy for the construction of a new stadium; (c) an increase in the stock of unsold goods produced by a firm; ((1) expenditures on a new car that a household plans to rent out; (e) rm's purchase of new equipment to replace the worn out machines; (i) expenditures on the construction of a new building of the Central bank; (g) a purchase of a new at that a household plans to rent out; (h) a purchase of foreign currency; (1) a purchase of shares issued by domestic rms; (i) a purchase of securities issued by foreign companies; (k) a purchase of government bonds; (1) household's purchase of a new county house built in the previous year; (m) firm's purchase of a piece of land to build a new workshop; (n) a purchase of gold bars; (0) a purchase of antiques; (p) rm's expenditures on the construction of its branch in another country; (q) a purchase of the painting of Salvador Dali by the national museum; (r) a purchase of a painting of a modern artist by a collector; (5) foreign rm's purchase of a controlling stake in the domestic firm; (t) foreign rm's expenditures on new equipment produced by domestic rms

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