Question

Which statement is an example of investment spending in macroeconomics? The manager of a Domino's Pizza store has deposited cash in the bank. The owner of a Domino's Pizza store has employed two students to deliver pizzas. The owner of the Domino's Pizza store has bought stock in Domino's. A Domino's Pizza store has purchased a new pizza oven.

Answer 1

Answer:

A Domino's Pizza store has purchased a new pizza oven.

Explanation:

In macroeconomics, investment = savings. At a national level, in order for companies to be able to invest, someone must have been able to save money first. But investment spending is like the second part of the equation, first someone saves, then someone else invests.

In this case, the purchase of a new pizza oven is considered investment, since it will help the restaurant generate more higher revenue. Investments are goods purchased today that will help to increase our future wealth.