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Is investment equal to all purchases of newly produced capital goods?
1) True
2) False

User Ammportal
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Final answer:

No, investment is not equal to all purchases of newly produced capital goods. Investment also includes other forms of spending such as changes in inventories and residential structures.

Step-by-step explanation:

No, investment is not equal to all purchases of newly produced capital goods. While investment does involve spending on new capital goods, it also includes other forms of spending, such as changes in inventories and residential structures. Investment expenditure falls into four categories: producer's durable equipment and software, nonresidential structures, changes in inventories, and residential structures. Therefore, investment is broader than just purchases of newly produced capital goods.

User Sam Dark
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