In the language of macroeconomics, what does "investment" refer to?
A)saving
B)the purchase of new capital
C)the purchase of stocks, bonds, or mutual funds
D)the purchase of durable goods

Question

Quizplus · Accepted Answer

In macroeconomics, "investment" refers to the purchase of new capital, such as machinery or equipment, with the intention of increasing production or improving efficiency. It does not refer to saving (choice A), the purchase of financial assets (choice C), or the purchase of durable goods (choice D), unless they are being used to produce other goods or services.

In the Language of Macroeconomics, What Does "Investment" Refer To