Question

In the language of macroeconomics, investment refers to Select one: a. saving. b. the purchase of new capital. c. the purchase of stocks, bonds, or mutual funds. d. All of the above are correct.

Answer 1

Answer:

The correct answer is letter "B": the purchase of new capital.

Explanation:

In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include stocks, bonds, real estate, mutual funds and, to a lesser degree, commodities, annuities, and options.

Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.