Business fixed investment includes:
A) rental housing that landlords buy to rent out.
B) goods that businesses put aside in fixed storage facilities, including materials and supplies.
C) the fixed cost of borrowing that businesses pay for new equipment.
D) equipment and structures that businesses buy to use in production.

Question

Quizplus · Accepted Answer

Business fixed investment refers to the purchases made by businesses in order to increase their productive capacity. This includes equipment and structures that are purchased for use in production. Options A and B do not fit the definition of fixed investment, while option C refers to the cost of borrowing rather than a capital purchase.

Business Fixed Investment Includes