Which of the following statements is true regarding the term investment as it is used in economics?

Question

Quizplus · Accepted Answer

Investment spending can vary depending on economic conditions, including interest rates, business confidence, and consumer demand. Additionally, investment can rise or fall at different times due to changes in technology, government policies, and global events. Therefore, option B is the correct answer. Options A, C, D, and E are incorrect. Investment spending is not always greater than consumption (option A); investment is an important determinant of economic health, as it affects long-term growth and productivity (option C); investment includes the purchase of stocks (option D) and bonds (option E), but it also includes spending on capital goods, research and development, and other forms of productive activity.

Which of the Following Statements Is True Regarding the Term