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Business, 24.02.2020 21:06 evanwall91

G The Council of Economic Advisors to the President of a country reported gross investment expenditure at $400,000 during a particular year. The group excluded from this valuation an amount of $50,000 spent by an existing domestic firm during the year. Mark, an economist, argued that this amount should have been included under the business fixed investment component of GDP. Which of the following, if true, would support Mark's argument? A. The firm stalled production temporarily to lower the value of its inventory stock by $50,000. B. The firm purchased new machinery worth $50,000 for its production facility during that year. C. The firm exported products worth $50,000 to a neighboring country. D. The firm sold off its existing machinery worth $50,000 and invested the proceeds in buying raw materials for production. E. The firm transferred machinery worth $50,000 from one of its closed facilities to one in operation.

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