Investment Is

question 39

Multiple Choice

Investment is

• A) the purchase of goods and services.
• B) the purchase of capital equipment and structures.
• C) when we place our saving in the bank.
• D) the purchase of stocks and bonds.

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Definitions:

Slopes Upward

Describes a line or curve on a graph that represents an increase in the variable on the y-axis as the variable on the x-axis increases, suggesting a positive relationship between the two variables.

Giffen Good

A product that experiences an increase in demand as its price rises, contrary to standard economic theory, due to its role as a staple good.

Income Increases

A situation where an individual's or household's earnings rise, leading to potential changes in spending behavior.

Utility Maximizing

The economic principle that individuals or firms seek to achieve the highest level of satisfaction or profit from their consumption or production choices.