In the language of macroeconomics, what is considered "investment"?
A) the purchase of an annual pass to the gym
B) the purchase of new tools and machinery
C) the purchase of stocks, bonds, or mutual funds
D) the purchase of durable goods

Question

Quizplus · Accepted Answer

In macroeconomics, "investment" refers to the purchase of goods that will be used in the future to produce more goods. This includes spending on capital goods like tools and machinery, which are used in production processes to generate output.

In the Language of Macroeconomics, What Is Considered "Investment