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Corporate Bonds New Issues

May 18th, 2006

corporate bonds new issues
Question: help me in this question?

which of the following will qualify as expenditures in the calculation of GDP?Explain why.Which of those will be included as part of investment and why?

1. the purchase of a new car for private use.
2. the purchase of a new house.
3. the purchase of Corporate Bonds.
4.the purchase of a new car for use as a taxi.
5.a company issues shares to expand its business
6. a drug dealer sells illegal drugs.
7. a student buys a used copy of a text book

Answer: Calculation of GDP ;-

1. the purchase of a new car for private use.
2. the purchase of a new house.
4.the purchase of a new car for use as a taxi.
5.a company issues shares to expand its business
7. a student buys a used copy of a text book.

Included in calculation as investment;-

3. the purchase of Corporate Bonds.
4.the purchase of a new car for use as a taxi.

Australian Market Report of March 25: Buying Spree Ends