Business firms make which of the following two types of investment?
A) foreign investment and domestic investment
B) fixed investment and capital investment
C) investment in stocks and investment in bonds
D) investment in new capital goods and investment in used capital goods to replace "worn-out" capital goods
E) fixed investment and inventory investment

Question

Quizplus · Accepted Answer

Business firms typically make fixed investments, which involve spending on long-term assets like machinery and buildings, and inventory investments, which involve changes in the stock of unsold goods.

Business Firms Make Which of the Following Two Types of Investment