When economists refer to "investment," they are describing a situation where: A. people are buying shares of corporate stock. B. resources are devoted to increasing future output. C. money is saved in a bank account. D. financial assets are purchased in the hope of a monetary gain.

Question

Kaiya

Business

16 July, 06:34

When economists refer to "investment," they are describing a situation where: A. people are buying shares of corporate stock. B. resources are devoted to increasing future output. C. money is saved in a bank account. D. financial assets are purchased in the hope of a monetary gain.

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Answers (2)

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Samir · Answer 1

B) resources are devoted to increasing future output.

Explanation:

In economics, savings equal investments, because money that you decided not to spend today will be used to create future wealth. This is the reason why the savings rate of a country is the most important factor in determining future economic growth.

This is basically the same logic that applies to individuals, if you have $100 today and decide to spend it all and not save any, then you will obtain immediate satisfaction, but you will not have any money tomorrow. Instead, if you decide to spend only a part and save another part in a bank, then the amount of money saved will earn interest and you will be able to purchase more things in the future.

Sidney Dunlap · Answer 2

B. resources are devoted to increasing future output

Explanation:

Investment involves the idea of sowing and reaping. It is act Of putting effort on resources with the aim of making a future gain