Investment is defined as
A) the purchase of a stock or bond.
B) the purchase of new capital goods by firms.
C) spending on capital goods by governments.
D) what consumers do with their savings.
E) financial capital.
B
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The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
(a) free movement of capital internationally is destabilizing for a developing country. (b) portfolio investments were camouflaging overvalued exchange rates. (c) debt for equity swaps had created imbalances in the ownership structure of the economy. (d) the potential benefits of NAFTA had been oversold.
According to the Laffer curve, after raising the tax rate to some level, any further increase by government will cause tax revenues to decrease
Indicate whether the statement is true or false