Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 3R, Problem 7MCQ
To determine
The question requires us to identify the factor which is included in the investment spending.
Expert Solution & Answer
Explanation of Solution
Investment spending is the sum of the following four factors:
- Business fixed investment: Addition to capital goods such as machinery and buildings by firms.
- Residential construction investment: Investment by households in making/constructing buildings for residence.
- Public investment: Investment by the government
- Inventory investment: It includes the change in the stock of finished goods and semi-finished goods.
So, investment spending includes spending on physical capital.
Option “b” is correct.
Chapter 3R Solutions
Krugman's Economics For The Ap® Course
Ch. 3R - Prob. 1MCQCh. 3R - Prob. 2MCQCh. 3R - Prob. 3MCQCh. 3R - Prob. 4MCQCh. 3R - Prob. 5MCQCh. 3R - Prob. 6MCQCh. 3R - Prob. 7MCQCh. 3R - Prob. 8MCQCh. 3R - Prob. 9MCQCh. 3R - Prob. 10MCQ
Ch. 3R - Prob. 11MCQCh. 3R - Prob. 12MCQCh. 3R - Prob. 13MCQCh. 3R - Prob. 14MCQCh. 3R - Prob. 15MCQCh. 3R - Prob. 16MCQCh. 3R - Prob. 17MCQCh. 3R - Prob. 18MCQCh. 3R - Prob. 19MCQCh. 3R - Prob. 20MCQCh. 3R - Prob. 21MCQCh. 3R - Prob. 22MCQCh. 3R - Prob. 23MCQCh. 3R - Prob. 24MCQCh. 3R - Prob. 25MCQCh. 3R - Prob. 1FRQCh. 3R - Prob. 2FRQCh. 3R - Prob. 3FRQCh. 3R - Prob. 1CTQCh. 3R - Prob. 2CTQCh. 3R - Prob. 3CTQCh. 3R - Prob. 4CTQCh. 3R - Prob. 5CTQ
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