Investment is defined as the purchase of
A)financial assets and inventories only.
B)new capital goods but not additions to inventories.
C)any financial asset only.
D)additions to inventories only.
E)new capital goods and additions to inventories.

Question

Quizplus · Accepted Answer

Investment refers to the purchase of new capital goods and additions to inventories. Financial assets alone are not considered investment unless they are being used to purchase new capital goods or add to inventories. Choice E covers both of these categories.

Investment Is Defined as the Purchase of