In the calculation of GDP, investment refers to the purchase of goods that will be used for future production. Among the options provided, the one that would be considered investment is:
A manufacturing firm builds a new plant in Mexico.
This is because building a new plant contributes to future production capabilities, which aligns with the definition of investment in GDP calculations.
The other options do not involve investment in a way that contributes to GDP:
- A school district depositing excess funds into a savings account is not an investment in goods or services.
- A child placing money under his mattress is simply saving and does not contribute to economic activity.
- An individual purchasing stock is a financial transaction, not a direct investment in physical capital like machinery or structures.
Therefore, the correct response is the option related to the manufacturing firm building a new plant in Mexico.