Investment equals inventory investment added to
A) business purchases of new capital goods.
B) purchases of new residential housing.
C) fixed investment.
D) business purchases of new capital goods and purchases of new residential housing.
E) either c or d

Question

Quizplus · Accepted Answer

Investment can be defined as the addition of new capital goods to a business's inventory or fixed investment. This includes both business purchases of new capital goods and purchases of new residential housing, which are classified as fixed investment. Therefore, the correct choice is either c or d.

Investment Equals Inventory Investment Added to