Investment is defined as:
A) income not spent on investment goods.
B) income not spent on consumption goods.
C) income not taxed by the government.
D) the purchase of new capital goods.

Question

Quizplus · Accepted Answer

Investment refers to the purchase of capital goods such as machinery, equipment, and buildings, which are used in the production of other goods and services. Therefore, the correct option is D, as it best describes the nature of investment. The other options (A, B, and C) are all incorrect as they do not accurately describe what investment actually means in economic terms.

Investment Is Defined As