Question

Which of the following do economists consider an investment?

1) Stocks
2) Bonds
3) Real estate
4) All of the above

Answer 1

Economists consider stocks, bonds, and real estate as forms of investment, each with varying levels of risk and return.

Step-by-step explanation:

Economists would consider all of the following as forms of investment: 1) Stocks, 2) Bonds, and 3) Real estate. Each of these options has a different level of risk and potential return. Stocks are typically considered the riskiest with the highest potential return, while bonds offer a more moderate level of risk with a moderate potential return, and real estate can be a relatively stable investment with varying returns depending on the property and market conditions. As capital suppliers, households can diversify their savings into these different assets to mitigate risk and potentially grow wealth over time.