Question

Choose ALL that Apply What is investment used for? a. Improving productivity. b. Depleting inventories. c....

Choose ALL that Apply

What is investment used for?

a.

Improving productivity.
b.

Depleting inventories.
c.

The production of non-durable goods.
d.

Immediate satisfaction of wants.
Business   Economics   
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Answer #1

Investment is used for improving productivity.

In economics, investment means creation of wealth. It means using the money for future purpose in order to purchase goods or services. Savings is generated into investment. Suppose, a person earns rs.100 per month and saves rs.20 per month. So in 1 year, the person saves 12*20=140 rupees. He can deposit the 140 rupees in bank and generate savings into investment which will in turn lead to creation of wealth as interest will be earned for the deposit.

Thus, investment is used for improving productivity.

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