Which of these is part of gross domestic capital formation?

A family's spending on a holidayCorrect answerYour answerPurchase of government bonds by a bankCorrect answerYour answerA rise in the stock of unsold cars with dealersCorrect answerYour answerPayment of interest on a loanCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Capital formation = fixed capital formation + change in stocks.
A rise in unsold stock is an addition to inventories.

Concept: Capital formation
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsExpenditure method

Practise this chapter →

Ten questions from Measuring National Income, at your own pace.

Practise this chapter →

Ten questions from Measuring National Income, at your own pace.

Practise this chapter All 69 questions in Measuring National Income Revise the notes for Measuring National Income

Which of these is part of gross domestic capital formation?

Explanation