Fixed investment includes
A) business spending on plant and equipment.
B) business spending on printing paper.
C) business salaries.
D) labor union contracts.

Question

Quizplus · Accepted Answer

Fixed investment refers to the spending on assets that are expected to provide goods or services over a period of more than one year. Business spending on plant and equipment is an example of fixed investment. The other options, such as spending on printing paper, salaries, and labor union contracts, are not considered fixed investment as they are more focused on the day-to-day operations of a business.

Fixed Investment Includes