Joan uses some of her income to buy mutual fund shares. A macroeconomist refers to Joan's purchase as investment.

Name: Joan uses some of her income to buy mutual fund shares. A macroeconomist refers to Joan's purchase as investment.
Brand: Quizplus
Rating: 4.9 (25 reviews)

Question

Quizplus · Accepted Answer

In macroeconomics, investment refers to the purchase of goods that will be used for future production, such as capital goods. Buying mutual fund shares is considered saving, not investment.

Joan Uses Some of Her Income to Buy Mutual Fund