Fixed investment includes all of the following except:
A)all purchases by businesses that add to their inventories.
B)all spending on capital goods.
C)all spending on producer goods.
D)all spending on goods that increase future production capabilities.

Question

Fixed investment includes all of the following except:
A)​all purchases by businesses that add to their inventories.
B)​all spending on capital goods.
C)​all spending on producer goods.
D)​all spending on goods that increase future production capabilities.

Quizplus · Accepted Answer

Fixed investment includes spending on capital goods and producer goods that increase future production capabilities. However, purchases by businesses that add to their inventories are not included in fixed investment, as they are considered part of current production rather than investment in future production capabilities.

Fixed Investment Includes All of the Following Except