When economists refer to investment expenditures they mean the
A) purchase of a consumer nondurable goods.
B) purchase of stocks or bonds.
C) use of today's resources to expand tomorrow's production or consumption.
D) production of intermediate goods.

Question

Quizplus · Accepted Answer

Investment expenditures refer to the use of resources today to expand tomorrow's production or consumption. This includes spending on capital goods such as equipment, buildings, and software, as well as research and development. It does not include the purchase of consumer goods or financial assets like stocks or bonds, or the production of intermediate goods.

When Economists Refer to Investment Expenditures They Mean the