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April 19, 2014

Homework Help: macroeconomics

Posted by Nicci on Sunday, October 30, 2011 at 9:43pm.

Which of these would NOT constitute investment:

a. someone buys 100 shares of Exxon-Mobil
b. Exxon-Mobile purchases 20 new oil rigs
c. General Motors builds a new assembly plant
d. Macy's remodels its stores

My answer was going to be d but my textbook tells me that buying shares does not constitute as investment until the company uses the funds to buy plant or equipment. Now I'm thinking that it would be b because remodeling may involve buying new display cases etc? Any help would be great, thanks!

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