Final answer:
The statement is false because investment spending usually refers to purchases of long-term physical assets by businesses, whereas buying stocks represents a financial investment aiming for returns through dividends or capital gains.
Step-by-step explanation:
The purchase of 100 shares of Apple computer stock is an example of investment spending is false. Investment spending in the context of a business typically refers to the expenditure on physical plant and equipment that are used to produce goods and services.
This is different from financial investment, which involves purchasing financial assets, like stocks, with the expectation of earning a return via dividends or capital gains.Businesses engage in investment spending when they buy long-term assets like machinery, buildings, or engage in research and development.
These expenditures are crucial for the future profitability of the company and the creation of jobs, and they are a significant but smaller portion of the GDP compared to consumption spending. Investing in the stock market, however, represents the allocation of financial capital to gain financial returns rather than direct involvement in the production of goods and services.