Question

Which purchase is excluded from investment by Stonier and Hague?

Options

• Purchase of new factories, machines and the like

• Purchase of existing paper securities, bonds, debentures or equities

• Expenditure for producer’s durable equipment

• New construction

Answer 1

Stonier and Hague do not treat purchase of existing paper securities, bonds, debentures or equities as investment. They include the purchase of new factories, machines and similar capital goods.