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Question

Real investment refers to the investment undertaken for net addition to the ___________.

A
stock of inventory
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B
stock of capital
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C
stock of savings
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D
none of the above
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Solution

The correct option is C stock of capital
Real investment refers to the allocation of a proportion of money in stock of capital of the business like tangible assets etc. in expectation of receiving some benefits in future in terms of money or kind like profits with the principle investment.

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