Economists use the word investment to refer to the portion of income that is:
A) spent on productive inputs, such as factories, machinery, and inventories.
B) not immediately spent on the consumption of goods and services.
C) placed in an individual's savings account.
D) stored in any interest-bearing account.

Question

Quizplus · Accepted Answer

Investment, in economic terms, refers to the expenditure on capital goods including factories, machinery, and inventories that can be used for future production. This is distinct from the general use of the term, which might include putting money into savings accounts or other financial products.

Economists Use the Word Investment to Refer to the Portion