Investment spending is spending on:
A) productive physical capital.
B) bonds.
C) shares of stock.
D) productive physical capital, bonds, and shares of stock.

Question

Quizplus · Accepted Answer

Investment spending refers to spending that is made in order to increase the amount of productive physical capital in an economy. Bonds and shares of stock may be considered financial investments, but they do not directly contribute to the production of goods and services. Therefore, choice A is the best answer.

Investment Spending Is Spending On