Actual investment spending is comprised of two components:
A)fixed investment and actual inventory investment.
B)planned investment and fixed investment.
C)unplanned investment and inventory investment.
D)fixed business investment and fixed housing investment.

Question

Quizplus · Accepted Answer

Actual investment spending is composed of fixed investment and actual inventory investment. Fixed investment refers to investment in physical capital such as machinery, equipment, buildings, and land. Actual inventory investment represents changes in the level of inventories that occur during a given period.

Actual Investment Spending Is Comprised of Two Components