As defined in national income accounting, investment includes:
A)business expenditures on machinery and equipment.
B)all consumption.
C)imports, but not exports.
D)all nonfood items.

Question

Quizplus · Accepted Answer

Investment refers specifically to business expenditures on machinery, equipment, and construction of buildings. Consumption, imports, and nonfood items are not included in the definition of investment.

As Defined in National Income Accounting, Investment Includes