Which of the following is not investment spending?
A)an increase in business inventories
B)the extensive renovation of an old factory building
C)the purchase of stock in Potomac Electric Company
D)the construction of a new apartment building
E)the purchase of a new silo for a farm

Question

Quizplus · Accepted Answer

The purchase of stock in Potomac Electric Company is not investment spending, as it involves buying an already-existing asset rather than creating a new one. The other choices involve spending on physical capital, such as buildings or equipment, which is considered investment spending.

Which of the Following Is Not Investment Spending