EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9780100605930
Author: Blinder
Publisher: YUZU
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Chapter 25, Problem 1DQ
To determine
Defining investment in two perspectives.
Expert Solution & Answer
Explanation of Solution
Generally, investment refers to the buying or accumulation of new capital goods such as tools, factories, and machinery for producing goods and services. However, ‘investment’ in the perspective of an economist is different from the general concept of investment. The economist will not use the terms of accumulation of new capital goods such as tools, factories, or machinery. According to an economist, investment is defined as the increase in capital stock.
Economics Concept Introduction
Investment: Investment refers to the buying or accumulation of new capital goods such as tools, factories, and machinery for producing goods and services.
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Chapter 25 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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