Question

includes all expenditures necessary to make the improvements ready for their intended use. For example, building a parking lot includes paving, fencing, and lighting.

Answer 1

Investment expenditure refers to spending on new capital goods, which can fall into four categories: producer's durable equipment and software, nonresidential structures, changes in inventories, and residential structures.

Step-by-step explanation:

Investment expenditure refers to the spending on new capital goods, which can be categorized into four types: producer's durable equipment and software, nonresidential structures, changes in inventories, and residential structures. The first three types of investment are typically conducted by businesses, while households conduct the last type. Examples of investments include purchasing machinery and equipment, constructing office buildings, and increasing inventory levels.