Economic investment refers to

Question

Quizplus · Accepted Answer

Economic investment refers to making new additions to a firm's stock of capital, such as investing in new equipment, buildings, or technology to increase production and expand the business. This type of investment is aimed at increasing the productive capacity of an economy and generating long-term economic growth. Options A and B refer to buying and selling financial assets for a profit, which is not necessarily aimed at increasing productive capacity or promoting economic growth. Option C refers to postponing consumption, which is the opposite of investment.

Economic Investment Refers to