Spending by businesses on things such as machines and buildings which can be used to produce goods and services in the future is
A) investment.
B) consumption.
C) consumption goods.
D) savings.

Question

Quizplus · Accepted Answer

Investment refers to spending by businesses on assets that are used to produce goods and services in the future. This includes things like machines, buildings, equipment, and technology that are used to increase the capacity or efficiency of a business. The purpose of investment is to generate future income and profits, and it is typically funded through savings, borrowing, or equity financing. In contrast, consumption refers to spending on goods and services that are used immediately or within a short period of time, while savings refers to income that is not spent but is instead set aside for future use. Consumption goods refer to goods that are used up in the production of other goods and services, rather than being sold directly to consumers.

Spending by Businesses on Things Such as Machines and Buildings