"In years when people buy few shares of stock, investment will be low and, therefore, so will gross domestic product (GDP)."
A. Disagree: Investment as a component of GDP refers to the purchase of physical and human capital and inventory, not stock purchases.
B. Disagree: While GDP will be low in this case, it is the result of a decrease in consumer expenditure on stocks, not investment spending.
C. Agree: GDP = C + I + G + NX. Therefore, as "I" (Investment) decreases, GDP decreases.
D. Agree: When investment is low, people must have less money to spend. Therefore, GDP decreases.
Answer: A. Disagree: Investment as a component of GDP refers to the purchase of physical and human capital and inventory, not stock purchases.