Business investment is most similar to what form of consumer expenditures and why?

Question

Quizplus · Accepted Answer

Business investment is similar to consumer durables in that they both contribute to future production or consumption. Consumer durables, such as cars or appliances, are often treated as a form of household saving because they can be used for future consumption. Similarly, business investment in capital goods, such as factories or machinery, contributes to future production and economic growth. Consumer nondurables, while also contributing to consumer welfare, are typically used up more quickly and do not have the same long-term investment value.

Business Investment Is Most Similar to What Form of Consumer