Which of the following would be considered investment in the calculation of GDP?(1 point)

Question

Responses

A manufacturing firm builds a new plant in Mexico.
A manufacturing firm builds a new plant in Mexico.

An individual purchases stock in a company.
An individual purchases stock in a company.

A child places money under his mattress for safe keeping.
A child places money under his mattress for safe keeping.

A school district deposits excess funds into a savings account.

Answer 1

In the calculation of GDP, the only activity that would be considered investment is:

A manufacturing firm builds a new plant in Mexico.

This is because GDP measures the value of goods and services produced within a country's borders, and investment includes business expenditures on capital goods, such as buildings and machinery. The other options do not contribute directly to GDP as they involve financial transactions rather than the creation of new goods or services.