Which of the Following Is Not Investment Spending

question 5

Multiple Choice

Which of the following is not investment spending?

• A)an increase in business inventories
• B)the extensive renovation of an old factory building
• C)the purchase of stock in Potomac Electric Company
• D)the construction of a new apartment building
• E)the purchase of a new silo for a farm

---

Definitions:

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices during a given period.

Price

The amount of money expected, required, or given in payment for something, reflecting the value agreed upon by both buyer and seller.

Consumption

is the process by which goods and services are used by individuals or businesses, ultimately leading to the satisfaction of human wants or needs.

Broad Stock Market Index

A financial index that tracks the performance of a wide range of stocks, representing a large segment of the equity market.