Question 40
EasyOriginal questionIn macroeconomics, investment means
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Investment is spending on new capital goods and additions to inventories.
Buying shares, deposits or an old house only transfers existing assets; nothing new is produced.
Worth noting
In everyday speech buying shares is 'investing', but it adds no new capital to the economy.
- Concept
- Meaning of investment
- Typical timeTypical
- 40 s
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