Which Statement Is Considered Investment Spending in Macroeconomics

question 236

Multiple Choice

Which statement is considered investment spending in macroeconomics?

• A) GM builds a new plant.
• B) Ryan Jones buys GM stock.
• C) Ryan Jones buys GM bonds.
• D) Ryan Jones buys GM stock and bonds.

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all costs and taxes from its total earnings.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin Ratio

A financial metric that represents the percentage of sale price that remains after variable costs are subtracted.

Sales Dollars

The total amount of money generated from the sale of goods or services before any expenses are subtracted.