Which one of the following would count as investment in the national income accounts?
A) purchase of a new airplane by an airline
B) purchase of a U.S. government bond
C) purchase of 100 shares of Wal-Mart stock
D) purchase of an existing house

Question

Quizplus · Accepted Answer

Investment in national income accounts refers to the purchase of goods that will be used for future production, such as capital goods. A new airplane for an airline is a capital good, thus it counts as investment.

Which One of the Following Would Count as Investment in the National