Investment is the purchase of final goods by business firms. the purchase of securities by business firms. the purchase of intermediate goods by business firms. the purchase of final goods by business firms and government. the purchase of final goods by the government.
Added by Sierra R.
Close
Step 1
Step 1: Investment refers to the purchase of assets or goods that are expected to generate income or appreciate in value over time. Show more…
Show all steps
Your feedback will help us improve your experience
Breanna Ollech and 92 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
In the measurement of gross domestic product, investment includes spending by A businesses on capital goods and changes in inventories B businesses on stocks, bonds, and other financial assets C individual households on stocks, bonds, and other financial assets D the federal government to purchase bonds issued by the Federal Reserve E the Federal Reserve to buy government bonds
Breanna O.
Identify each of the following investments as either an economic investment or a financial investment. a. A company builds a new factory. b. A pension plan buys some Google stock. c. A mining company sets up a new gold mine. d. A woman buys a 100 -year-old farmhouse in the countryside. e. A man buys a newly built home in the city. f. A company buys an old factory.
Prashant B.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD