The purchase of fifty new food-processing machines by the Campbell Soup Corporation would be classified as investment spending.

Question

Quizplus · Accepted Answer

Investment spending refers to the purchase of capital goods, such as machinery, that are used to produce goods and services. The purchase of fifty new food-processing machines by the Campbell Soup Corporation is a capital expenditure, and therefore, classified as investment spending.

The Purchase of Fifty New Food-Processing Machines by the Campbell