To macroeconomists,investment is mainly the purchases of goods and services
A) by businesses.
B) to hold as wealth, such as gold coins or art.
C) to hold as wealth, such as stocks and bonds.
D) in the period previous to the period being studied.

Question

Quizplus · Accepted Answer

Macroeconomists view investment as purchases made by businesses for the purpose of producing goods and services. This includes investments in capital goods, such as machinery and equipment, as well as investments in research and development. Holding assets as wealth, such as gold coins or art (B) or stocks and bonds (C), is considered saving, not investment, in macroeconomics. Investments made in previous periods (D) are not relevant to the current analysis of macroeconomic activity.

To Macroeconomists,investment Is Mainly the Purchases of Goods and Services