Melissa purchases shares in a government bond mutual fund.Is this included in the aggregate demand component "Investment"?

Question

Quizplus · Accepted Answer

Purchasing shares in a government bond mutual fund is considered a financial transaction and does not directly contribute to the physical investment in the economy's productive capacity. Aggregate demand's "Investment" component typically includes business investments in equipment, structures, and inventory changes, not financial investments like buying mutual fund shares.

Melissa Purchases Shares in a Government Bond Mutual Fund