Investment is defined as
A)what consumers do with their savings.
B)the purchase of a stock or bond.
C)spending on capital goods by governments.
D)financial capital.
E)the purchase of new capital goods by firms.

Question

Quizplus · Accepted Answer

Investment refers to the purchase of new capital goods by firms to increase their productive capacity and improve their profitability. Options A, B, C, and D, may involve the use of savings and financial capital, but they do not fully capture the concept of investment.

Investment Is Defined as