An Example of Business Fixed Investment Spending Is

question 240

Multiple Choice

An example of business fixed investment spending is

• A)a purchase of a home by a household.
• B)a purchase of a computer by an accounting firm.
• C)a purchase of a bond by General Electric Corporation.
• D)$200 million of unsold cars at a car dealership.

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Definitions:

Loanable Funds

Money available for borrowing, which is determined by the savings in the economy plus the money provided by banks and other financial institutions.

Interest Rate

The requisition, as a percentage of the principal, placed by lenders on borrowers for asset use.

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth.

Consumption

The use of goods and services by households for personal needs or the process of using up resources or goods, leading to a decrease in their availability.