Which of the following DOES NOT represent an increase in aggregate investment spending? 1. the purchase of a newly built commercial facility by a computer retail firm. 2.The purchase of corporate bonds in the bond market. 3.The purchase of a laptop computer by an accounting firm to use in doing audits. 4.The purchase of a website design service to use for e-commerce.

Jump to Answer Section
Category:

Which of the following DOES NOT represent an increase in aggregate investment spending? 1. the purchase of a newly built commercial facility by a computer retail firm. 2.The purchase of corporate bonds in the bond market. 3.The purchase of a laptop computer by an accounting firm to use in doing audits. 4.The purchase of a website design service to use for e-commerce.

Which of the following DOES NOT represent an increase in aggregate investment spending?

  1. the purchase of a newly built commercial facility by a computer retail firm.

2.The purchase of corporate bonds in the bond market.
3.The purchase of a laptop computer by an accounting firm to use in doing audits.
4.The purchase of a website design service to use for e-commerce.

Answer & Explanation (1)

Which of the following DOES NOT represent an increase in aggregate investment spending?

  1. the purchase of a newly built commercial facility by a computer retail firm.

2.The purchase of corporate bonds in the bond market.
3.The purchase of a laptop computer by an accounting firm to use in doing audits.
4.The purchase of a website design service to use for e-commerce.

Answer

  • The purchase of corporate bonds in the bond market.
    Explanation:
    Aggregate investment spending includes purchase of goods in a given period of time, which are not used or consumed at present time and which are used to produce other goods, capital or services. Laptop is used to provide a service, commercial facility is used to provide a service, and finally, website design service is used for provision of a service. However, purchasing bonds does not qualify as aggregate investment spending as this is not use to produce other goods or services.

 

Purchase answer to view it. $5

Login/register for free and load your wallet instantly with $5 to buy and view this solution.

Category: