Question

Which of the following would not be included in aggregate demand/GDP spending?

a. an increase in firms' inventories.
b. purchases of goods by households.
c. depositing money at a bank.
d. firm's' purchase only newly produced machinery.

Answer 1

Depositing money at a bank would not be included in aggregate demand/GDP spending.

Step-by-step explanation:

The correct answer is c. Depositing money at a bank would not be included in aggregate demand/GDP spending. Aggregate demand refers to the total amount of spending in an economy, specifically the spending on goods and services by households, firms, the government, and foreign buyers. Depositing money at a bank does not directly contribute to immediate spending on goods and services. It is an act of saving or investing, rather than consumption.