The construction of a new shopping center is an example of:
A) business fixed investment.
B) residential investment.
C) inventory investment.
D) financial investment.

Question

Quizplus · Accepted Answer

The construction of a new shopping center is a business fixed investment because it involves the creation of a long-lasting asset that will be used to generate income for a business. It is not residential investment because it is not creating new housing units. It is not inventory investment because it is not adding to a company's inventory of goods for sale. And it is not financial investment because it does not involve the purchase of securities or other financial assets.

The Construction of a New Shopping Center Is an Example