Investment equals
A) planned investment plus unplanned investment.
B) planned investment minus unplanned investment.
C) unplanned investment minus planned investment.
D) planned investment in a free market economy.

Question

Quizplus · Accepted Answer

Investment includes both planned and unplanned investment. Planned investment refers to the amount of investment that firms plan to undertake based on their expected profits and future output. Unplanned investment refers to the investment that firms undertake due to unexpected changes in sales or output. Therefore, the total investment is the sum of both planned and unplanned investment.

Investment Equals