An example of investment spending is the:
A) amount of funds raised by the government in the financial markets.
B) purchase of government bonds by a private household.
C) purchase of a freezer by an ice-cream parlor.
D) purchase of stock shares by a mutual fund.

Question

Quizplus · Accepted Answer

Investment spending refers to the purchase of goods and services that will be used to produce future income. The purchase of a freezer by an ice-cream parlor is an example of investment spending because it will be used in the production process to create future revenue. The other choices do not fit the definition of investment spending.

An Example of Investment Spending Is The