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Consider Each of These Forms of Investment

Question 364

Essay

Consider each of these forms of investment. Identify whether it is constitutes investment spending, an investment in physical assets, or a financial investment.
a. You purchase a 1965 Ford Mustang.
b. You buy 50 shares of stock in the Ford Motor Company.
c. Ford Motor Company builds a new plant in Tennessee.

Correct Answer:

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a. This is an investment in a physical a...

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