Question

an example of business fixed investment spending is
○ a. $200 million of unsold cars at a car dealership.
○ b. a purchase of a computer by an accounting firm.
○ c. a purchase of a home by a household.
○ d. a purchase of a bond by general electric corporation.

Explanation:

Business fixed investment spending refers to spending by businesses on capital goods that are used in the production process. A computer purchased by an accounting firm is a capital good used in the firm's operations. Unsold cars (A) are inventory investment. A household purchasing a home (C) is residential investment. A bond purchase (D) is a financial investment, not a fixed investment in physical capital for production.

Answer:

B. a purchase of a computer by an accounting firm.