Answered

Which of the following is not included in gross domestic private investment, as defined in national income accounts?

A. Changes to business inventories
B. Domestic home construction undertaken by and for the private sector
C. Government construction of new highways and dams
D. The value of all new capital goods bought by business firms



Answer :

GinnyAnswer

Final answer:

Government construction projects are not part of gross private domestic investment.


Explanation:

Government construction of new highways and dams is not included in gross domestic private investment. Gross private domestic investment encompasses expenditures by business firms on new buildings, plants, tools, equipment, and software; expenditures on new residential housing; and changes in business inventories. These components contribute to the nation's capital stock, unlike government construction projects.


Learn more about Gross private domestic investment here:

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