Investment from a macroeconomic perspective refers to

Group of answer choices:

A) saving

B) the purchase of new capital

C) the purchase of stocks, bonds, or mutual funds

D) All of the above are correct

Answer:

The correct answer is letter "B": the purchase of new capital.

Explanation:

In macroeconomics, an investment is a capital that has been purchased to produce profit or interest over time. Popular investments include stocks, bonds, real estate, mutual funds and, to a lesser extent, commodities, annuities, and options. Many investments trade on the stock market every day, global events and company results will cause the price of the investment to rise or fall.

From the macroeconomics perspective, investment refers to the new spending on capital goods. This is called Net investment.

The term Investment refers to the purchases of capital goods like machinery, equipment and buildings.

These purchases may be made to replace capital equipment that are worn out to maintain productivity at current levels.

Investment also refers to the purchases of capital goods that result in lowering costs, improving productivity and increasing profits in the long run.

In economics, Gross Investment is the sum of both types of capital expenditure listed above.

However, net investment refers only to new spending on capital goods (not replacement expenditure). Since economic theory places a lot of importance on growth, investment refers to net investment.