Economists define investment as the purchase of
A) a new physical asset such as a new machine or a new house.
B) any physical asset, whether new or not, used by business to increase production.
C) any physical asset used by business to increase production and the repurchase of common stock.
D) business spending on capital and household spending on durable goods.
A
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If a firm's marginal cost exceeds its average cost, then its average cost must be rising
a. True b. False Indicate whether the statement is true or false
A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities. b. the interest rate it pays on deposits and the rate it receives on loans. c. its primary deposit and its derivative deposit. d. its assets and its liabilities. e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.