Thinking as an economist would, which is TRUE of investment?

A) Investment is putting money into stocks and bonds.
B) Investment is a stock concept.
C) Investment represents spending on capital goods.
D) It is the portion of disposable income that is not used for consumption or saving.


C

Economics

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In the extended classical model, an unanticipated increase in the money supply would cause output to ________ and the price level to ________ in the short run

A) increase; increase B) decrease; remain unchanged C) remain unchanged; increase D) decrease; decrease

Economics

A firm that can determine the price-output combination in order to maximize profit is known as a

A) price searcher. B) price taker. C) demand searcher. D) cost taker.

Economics

To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:

a. downward-sloping. b. upward-sloping. c. horizontal. d. vertical.

Economics

Under rate of return regulation,

A. P = AVC. B. P = MC. C. P > ATC. D. P = ATC.

Economics