In the national spending approach to calculating GDP investment spending involves the acquisition of which of the following?
A) capital goods
B) stocks and bonds
C) money
D) any of a number of financial instruments

Question

Quizplus · Accepted Answer

Investment spending refers to spending on capital goods such as machinery, equipment, and buildings that businesses use to produce goods and services. Stocks and bonds are not considered capital goods and are instead part of financial investment spending. Money on its own is not a capital good and is only considered a component of investment spending when it is used to purchase capital goods.

In the National Spending Approach to Calculating GDP Investment Spending