Final answer:
The answer to the question is a. True. Investment involves the provision of financial capital with the expectation of a future flow of benefits, guided by the expected rate of return, which varies with different types of investments.
Step-by-step explanation:
An investment may indeed be thought of as an exchange of resources now for an expected flow of benefits in the future. Those who supply financial capital through saving do so with the anticipation of receiving a rate of return. Conversely, entities that demand financial capital by receiving investment funds are expected to pay this rate of return. The nature of returns can vary greatly, depending on the type of investment which may include dividends, interest payments, or capital gains.
According to the economic theories of Keynes, investment decisions are heavily influenced by expectations about the future. Businesses weigh the expected investment benefits, which may come in the form of future profits, against the costs of the investment, typically interest rates. Therefore, the true essence of an investment is closely tied to the predictive expectations regarding its potential profitability.
Thus, the answer to the student's question is: a. True. An investment is essentially an exchange where resources are provided in the present with the expectation of future benefits, which is framed by the current and prospective rate of return.