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Gross private domestic investment spending

1. Which of the following is not included in gross private domestic investment spending?

Household spending on durable goods.

Spending on business inventories.

Business spending on plant and equipment.

Household spending on residential construction

none of the above

All of the above

2. In the money market, an increase in money demand will:

result in a leftward shift in the money demand curve increasing interest rates

result in a rightward shift in the money demand curve increasing interest rates.

result in a rightward shift in the money demand curve decreasing interest rates.

result in a leftward shift in the money demand curve decreasing interest rates.

none of the above
all of the above

3. A decrease in the reserve requirement would:

decrease excess reserves and reflect a contractionary monetary policy

decrease excess reserves and reflect an expansionary monetary policy.

increase excess reserves and reflect an expansionary monetary policy.

increase excess reserves and reflect a contractionary monetary policy.

none of the above

all of the above

Solution Preview

1. Which of the following is not included in gross private domestic investment spending?

As Gross private domestic investment (I), such as spending by business firms on factory construction. It ...

Solution Summary

Gross private domestic investment spending is clearly explored in this case.

$2.19