Fixed investment is
A) the change in stocks of finished goods.
B) the change in the stocks of goods in process.
C) capital purchase by businesses of newly produced durables.
D) purchases by consumers of newly produced consumer durables.

Question

Quizplus · Accepted Answer

Fixed investment refers to capital purchases by businesses of newly produced durables, such as equipment, machinery, and buildings. Options A and B refer to changes in inventory, which do not necessarily represent investment. Option D refers to consumer purchases of durables, which are not considered fixed investment.

Fixed Investment Is