Investment is
A) spending by businesses on things which can be used to produce goods and services in the future.
B) the production of goods for immediate satisfaction.
C) the purchasing of stocks and mutual funds.
D) goods bought by households.
A
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Which of the following is not a potential problem associated with government debt?
a. redistribution of income b. promotes underconsumption c. creates inflation d. promotes undersaving e. leads to less private investment
If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 falls, and the monetary base remains the same. b. M1 falls, M2 falls, and the monetary base remains the same. c. M1 rises, M2 rises, and the monetary base remains the same. d. M1, M2, and the monetary base fall. e. M1, M2, and the monetary base remain the same.