Indicate whether you agree or disagree with the following statement:
Part 2
"In years when people buy
fewfew
shares of stock, investment will be
lowlow
and, therefore, so will
gross domestic product
LOADING...
(GDP)."
Part 3
A.
Agree: When investment is
lowlow ,
people must have
lessless
money to spend. Therefore, GDP
decreasesdecreases.
B.
Agree: GDP = C + I + G + NX. Therefore, as "I" (Investment)
decreasesdecreases ,
GDP
decreasesdecreases.
C.
Disagree: While GDP will be
lowlow
in this case, it is the result of
a decreasea decrease
in consumer expenditure on stocks, not investment spending.
D.
Disagree: Investment as a component of GDP refers to the purchase of physical and human capital and inventory, not stock purchases.