In the National Spending Approach, Investment Spending Involves the Acquisition

question 122

Multiple Choice

In the national spending approach, investment spending involves the acquisition of which of the following?

• A) capital goods
• B) stocks and bonds
• C) money
• D) any of a number of financial instruments

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business.

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes towards covering fixed costs and generating profit.

Variable Costs

Charges that adjust in relation to the quantity of goods or services manufactured by a corporation.