The portion of income that is spent on productive inputs, such as factories, machinery, and inventories, is called:
A) investment.
B) savings.
C) consumption spending.
D) loanable funds.

Question

Quizplus · Accepted Answer

Investment refers to the portion of income that is spent on productive inputs, such as factories, machinery, and inventories. This spending is intended to increase future production and generate more income in the long run.

The Portion of Income That Is Spent on Productive Inputs