kalsigursharan4 kalsigursharan4

27-05-2024
Business

Answered

Economists define investment to include:

Answer :

GinnyAnswer GinnyAnswer

27-05-2024

Final answer:

In economics, investment focuses on increasing capital stock through activities like business fixed investments, distinct from financial asset purchases.

Explanation:

Investment in economics refers to activities that increase the economy's stock of capital, such as business fixed investment in new physical capital goods like machinery and equipment for production. It excludes the purchase of financial assets like stocks and bonds. This distinction helps prevent double-counting in GDP calculations.

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