Economists define investment to include purchases of
A)capital goods and inventories.
B)capital goods,household durable goods,and inventories.
C)capital goods,such as tools,instruments,and buildings.
D)capital goods,equity stocks,and bonds.
E)capital goods,equity stocks,and inventories.

Question

Quizplus · Accepted Answer

Economists define investment as purchases of capital goods (such as tools, instruments, and buildings) as well as inventories (goods held by firms to be sold at a later time). Therefore, Choice A is the best answer. Choice B is incorrect because household durable goods are not considered a part of investment. Choices C, D, and E are incorrect because they do not include inventories.

Economists Define Investment to Include Purchases of