Business fixed investment includes:
A)rental housing that landlords buy to rent out.
B)goods 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 purchase of long-term assets such as equipment and structures that businesses buy to use in their production process. Option A refers to residential real estate investment, which is not considered as business fixed investment. Option B refers to inventory, which is not a long-term asset like equipment or buildings. Option C refers to borrowing costs, which are not considered as business fixed investment, but rather a financing cost.

Business Fixed Investment Includes