# Indicate whether you agree or disagree with the following statement: "In years when people buy many...

###### Question:

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)." O A. Disagree: While GDP will be high in this case, it is the result of an increase in consumer expenditure on stocks, not investment spending. O B. Agree: GDP =C+I+G+ NX. Therefore, as "T" (Investment) increases, GDP increases. O C. Disagree: Investment as a component of GDP refers to the purchase of physical and human capital and inventory, not stock purchases. OD. Agree: When investment is high, people must have more money to spend. Therefore, GDP increases.

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