Which of the following is not included in the investment category under the expenditure approach to GDP accounting?
a. newly constructed residential housing
b. factory buildings
c. stocks and bonds
d. additions to inventory
Question 2
Identify the correct statement with respect to consumption and saving function.
a. Both the consumption function and the saving function have negative slopes.
b. As disposable income declines, consumption and saving increase.
c. The consumption function has a negative slope while the saving function has a positive slope.
d. As disposable income rises, consumption and saving increases.
e. The consumption function has a positive slope while the saving function has a negative slope.
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