The Distinction Between Consumption And Investment Is A That Only Households Consume And Only Businesses

Question

.The distinction between consumption and investment is:

A. that only households consume and only businesses

invest.

B. somewhat arbitrary, since investment includes housing investment, which does not increase future

productive capacity.

C. that investment always increases future productive capacity, while consumption does not.

D. arbitrary, since the same expenditure may be counted as a consumption item in one year and an

investment in another

Macroeconomics