All of the following actions are investments in the sense of the term used by macroeconomists except:
A) IBM's building a new factory.
B) corner candy store's buying a new computer.
C) John Smith's buying a newly constructed home.
D) Sandra Santiago's buying 100 shares of IBM stock.

Question

Quizplus · Accepted Answer

Buying shares of stock is not considered an investment in the sense used by macroeconomists as it does not directly contribute to the production of goods or services. The other choices involve investments in physical capital (such as a factory or computer) or residential capital (such as a home).

All of the Following Actions Are Investments in the Sense