Investment is defined as the purchase of
A)the purchase of new capital goods and additions to inventories.
B)the purchase of new capital goods but not additions to inventories.
C)any financial asset only.
D)additions to inventories only.
E)financial assets and inventories only.

Question

Quizplus · Accepted Answer

Investment in economics refers to the purchase of new capital goods (such as machinery, buildings, and equipment) and additions to inventories, as these contribute to future production capacity.

Investment Is Defined as the Purchase of