Which of the Following Is Not a Component of Investment

question 50

Multiple Choice

Which of the following is not a component of investment spending?

• A)spending by firms on equipment
• B)the purchase of 1000 shares of corporate stock
• C)residential construction
• D)changes in inventories

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Definitions:

Real Balance Effect

An economic theory suggesting that inflation or deflation changes individuals' purchasing power, affecting their real income and consumption patterns.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Marginal Utility

The change in satisfaction or benefit derived from consuming an additional unit of a good or service.