Investment spending includes all purchases of capital goods, including buildings, and inventories by private businesses and nonprofit institutions, as well as all money spent on stocks and bonds.

Question

Quizplus · Accepted Answer

Investment spending in economics primarily refers to purchases of physical assets like capital goods, buildings, and inventories by businesses and nonprofit institutions. It does not include money spent on financial assets like stocks and bonds.

Investment Spending Includes All Purchases of Capital Goods, Including Buildings