A. Patricia Jones purchases the assets down payment for her son’s college education.
B. Patricia Jones purchases the brand new pizza oven for the family pizzeria.
C. Patricia Jones uses the increase from the pizzeria to take the family upon vacation.
D. Patricia Jones buys batch in the association which manufactures pizza ovens.
{ 2 comments… read them below or add one }
Only B. B involves purchasing freshly produced capital.
A and D don’t count because that is simply a transfer. IN A, the government will take that money and spend it. That counts as public consumption in GDP. In D, she is buying the stock from someone else, the company doesn’t see any of that money.
C. That is purely consumption.
A,B and D