Which of the following would not be included in an economist's definition of investment spending?
A)the purchase of robots by Motor Magic Manufacturing
B)the construction of a new office building by the Mountain City Real Estate Company
C)the purchase of General Motors stock by Donald Trump
D)the purchase of a new pizza oven by H and R Pizza
E)an unexpected rise in inventories at Randle Manufacturing

Question

Quizplus · Accepted Answer

The purchase of stocks is considered financial investing, which is not included in an economist's definition of investment spending. Investment spending refers to tangible investments in capital goods or physical assets such as machinery, buildings, and equipment that can increase productivity and future output.

Which of the Following Would Not Be Included in an Economist's