Which of these is investment in the macroeconomic model?

A firm adds a new floor to its factoryCorrect answerYour answerA family buys sharesCorrect answerYour answerA student deposits money in a bankCorrect answerYour answerA family buys a second-hand carCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Investment is spending on new capital goods and additions to inventories.

Concept: Investment spending
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPlanned investment; ex ante and ex post

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Which of these is investment in the macroeconomic model?

Explanation