Which of the following would a macroeconomist consider as investment?
A)Ernest purchases a bond issued by Star-Kist.
B)Jerry purchases stock issued by IBM.
C)Alice builds a new restaurant.
D)Alice buys an amount of gold.

Question

Quizplus · Accepted Answer

A macroeconomist would consider building a new restaurant as investment because it involves spending money to acquire a physical asset in the form of a business property with the expectation of generating income over time. The other options do not involve the creation of new physical assets that could increase productive capacity in the economy.

Which of the Following Would a Macroeconomist Consider as Investment