Which of the following are examples of the gross private domestic investment component of GDP?
I. the purchase of production machinery by IBM
II. an increase in the finished goods inventory at Intel
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate.
B) real interest rate is less than the nominal interest rate.
C) nominal interest rate is zero.
D) real interest rate equals the nominal interest rate.