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zmey [24]
3 years ago
13

Which of the following is classified as investment? I. existing homes II. business spending on new equipment III. purchase of co

rporate stock IV. taking out a loan to build an office building
Business
1 answer:
slamgirl [31]3 years ago
7 0

Answer:

The answer is II. business spending on new equipment

Explanation:

For a spending to be classified as investment, the money must ne spent or acquiring non-current asset(fixed asset or long-lived asset.

In the question above, only business spending on new equipment will be classified as investment because the business spent money to acquire non-current asset.

Purchase of current stock is a financing activitiy while taking out loan is also a financing activitiy.

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Explanation:

When the economic conditions and demand for goods and services slow down, prices will naturally fall as the individuals selling those goods and services try to attract scarce buyers.  

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