Home › CBSE Class 12 (Arts) › Economics › National Income Accounting › In macroeconomics, what does the word investment…
In macroeconomics, what does the word investment mean?
AAddition to the capital stock
BDepositing money in a bank
CBuying shares in a company
DTaking an insurance policy
Answer & Solution
Correct answer: A. Addition to the capital stock
Economists define investment as capital formation, not the purchase of financial assets such as shares.
Related questions
Countries rich in natural resources areIf GDP rises but real incomes of 90% of people fall, GDP as a welfare index isAn Indian company's profit earned in Dubai affects which aggregate?A firm buys Rs 40 of raw material and sells output of Rs 90. Its value added isWhich part of national income does household consumption and saving come from?Corporate tax is deducted from national income because itA fine paid by a household is an example of aPersonal disposable income is personal income minus