Investment is ?
Correct answer: B. The purchase of capital equipment and structures
- A. The purchase of goods and services
- B. The purchase of capital equipment and structures
- C. When we place our saving in the bank
- D. The purchase of stocks and bonds
Explanation
In macroeconomics, investment means spending on newly produced capital goods such as machinery, equipment and structures. Buying stocks or bonds is financial saving, not investment in the national-income sense.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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