Expenditures by firms on new machines and buildings that are expected to yield a future stream of income is known as
A) consumer durable.
B) consumption goods.
C) fixed investment.
D) inventory investment.

Question

Quizplus · Accepted Answer

Fixed investment refers to the expenditures made by firms on new machines and buildings that are expected to generate a future stream of income. Consumer durable goods refer to goods used by consumers over a long period, such as cars or refrigerators. Consumption goods refer to goods used by consumers for immediate satisfaction, such as food and clothing. Inventory investment refers to the addition made to product inventories.

Expenditures by Firms on New Machines and Buildings That Are