00:01
For each of the following, is it an example of investment spending, investment, investing in financial assets, or investing in physical assets? rupert moneybuck spends $100 or buys 100 shares of existing coca -cola stock.
00:16
He is investing in a financial asset.
00:19
He has a paper claim that entitles him to future income from coca -cola.
00:23
It is not an example of investment investing spending because it does not add to the stock of the physical capital of the economy.
00:31
Rhonda movie star spends $10 million to buy a man.
00:33
Built in the 70s.
00:36
She is investing in physical asset.
00:38
She has bought something that she has the right to use or to dispose of as she so chooses.
00:43
It's not an example of investment spending because it does not add to the stock of the physical capital in the economy as the mansion was already there.
00:52
Ronald basketball star spends 10 million to build a new mansion with a view of the pacific ocean.
00:56
He is engaging in investment spending...