Investment, as a part of GDP, includes:
A) spending on productive inputs such as stocks, bonds, and other types of financial instruments.
B) any goods that are bought by firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them.
C) consumption goods that are purchased by households.
D) any item you buy that you are looking for a return on over time.

Question

Quizplus · Accepted Answer

Investment, as a part of GDP, refers to spending on productive inputs such as machinery, equipment, and construction that are used to produce future goods and services. These purchases are made by firms rather than households, and are intended to generate future returns. Therefore, choice B, which refers specifically to goods bought by firms for future production, is the best answer. Choices A, C, and D do not accurately describe investment as part of GDP.

Investment, as a Part of GDP, Includes