Which of the following is classified as spending on investment?
I. new residential construction
II. business spending on new equipment
III. business spending on structures such as office buildings
IV. purchase of government bonds

Question

Which of the following is classified as spending on investment? 
I. new residential construction
II. business spending on new equipment
III. business spending on structures such as office buildings
IV. purchase of government bonds

Quizplus · Accepted Answer

New residential construction, business spending on new equipment, and business spending on structures are all considered investment spending. The purchase of government bonds is not classified as investment spending; it is considered a financial transaction.

Which of the Following Is Classified as Spending on Investment