The following are correct descriptions about the concept of Productive Investment (I) as one of the...
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The following are correct descriptions about the concept of Productive Investment (I) as one of the categories of Aggregate Expenditure, EXCEPT: In equilibrium is equal to the total amount of savings. Is the expenditure on physical capital and infrastructure used for production purposes. Is the purchase of financial assets like bonds or stocks. Gross investment (I) is net investment plus replacement of depreciated capital. The following are correct descriptions about the concept of Productive Investment (I) as one of the categories of Aggregate Expenditure, EXCEPT: In equilibrium is equal to the total amount of savings. Is the expenditure on physical capital and infrastructure used for production purposes. Is the purchase of financial assets like bonds or stocks. Gross investment (I) is net investment plus replacement of depreciated capital.
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The incorrect description of Productive Investment is Option 3 is the purcha... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Posted Date:
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