In economics, investment is defined as
A) the spending by businesses on capital goods and inventories.
B) the spending by households on human capital and durable goods.
C) disposable income minus consumption.
D) disposable income plus consumption.

Question

Quizplus · Accepted Answer

Investment is the spending by businesses on capital goods and inventories. This includes the production and acquisition of fixed assets like machinery, equipment, buildings, and software, as well as the purchase of inventories like raw materials and finished goods. Investment is an important driver of economic growth and job creation as it leads to increased production and productivity in the long run.

In Economics, Investment Is Defined as