phillip764 phillip764
  • 25-04-2021
  • Business
contestada

spending consists of expenditures on new plants, capital equipment, machinery, and inventories.

Respuesta :

topeadeniran2 topeadeniran2
  • 30-04-2021

Answer: investment

Explanation:

Investment spending refers to the spending that's made by an economic agent when a capital good is bought which will be used in producing further goods.

For example, the expenditures on new plants, capital equipment, machinery, and inventories isn't meant for immediate consumption but in order to help create further goods in the economy. Hence they are an investment expenditure.

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