Indicate whether you agre

Indicate whether you agre

Indicate whether you agree or disagree with the following statement:”In years when people buy many shares of stock, investment will be high and, therefore, so will gross domestic product (GDP).”A. Disagree: Investment as a component of GDP refers to teh purchase of physical and human capital and inventory, not stock purchases.B. Agree: GDP= C+I+G+NX. Therefore, as “I” (Investment) increases, GDP increases.C. Disagree: While GDP will be high in this case, it is the result of an increase in consumer expenditure on stocks, not investment spendingD. Agree: When investment is high, people must have mroe money to spend. Therefore, GDP increases.

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