The term ‘investment’ in macroeconomics means

JAMB Economics 2023 276 views
Source: JAMB · 2023

The term ‘investment’ in macroeconomics means

  1. The total amount of capital goods in the country
  2. Total amount of money invested in bonds and stocks
  3. Profit
  4. The addition to the stock of capital goods in an economy during a specific period. ✓
Explanation

In macroeconomics, investment is the addition to the stock of capital goods in an economy during a specific period. Examples are new factories, machines and roads.

Buying shares or bonds only moves ownership around. It does not add new capital goods.

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