Question

Construction of new homes is considered part of: 2 points A. investment spending. B. consumption. C. government spending. D. private saving. E. the stock market.

Answer 1

Answer:

The answer is A.

Explanation:

Construction of new homes is counted as part of investment spending in computing the GDP because they can be rented or leased out for generation of income.

Option B is incorrect because this is not private spending.

Option C is incorrect because it has nothing to do with government

Option D is incorrect because this is not a form of private saving while the question has nothing to do with the stock market (option E)