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Which of the following is not an investment expenditure in goods and services?
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- Expansion of the main plant of a company
- Purchase of a house
- Purchase of machinery
- An increase in business inventories
- Expansion of the main plant of a company
Correct Option: B
Investment expenditure refers to the expenditure incurred either by an individual or a firm or the government for the creation of new capital assets like machinery, building etc. Business inventories are goods that firms produce in one time period with the intent to sell later and they are counted as part of business investment. The purchase of house cannot be considered as investment expenditure as it may be for personal use.
