Which of the following is a component part of investment spending?
A)the purchase of a new microwave by a fast food restaurant
B)the purchase of 500 shares of corporate stock
C)the sale of 500 shares of corporate stock
D)all of the above

Question

Quizplus · Accepted Answer

Investment spending in economics refers to spending on new physical capital, such as machinery and equipment used in the production process. The purchase of a new microwave by a fast food restaurant qualifies as investment spending because it is a purchase of new equipment for business use. Purchasing shares of corporate stock, whether buying or selling, does not count as investment spending because it does not involve the acquisition of physical capital.

Which of the Following Is a Component Part of Investment