Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. For each form of private spending, indicate whether it represents consumption or investment. Private Spending: Consumption Investment
People buying washing machines
Firms buying automobiles for delivery services
People buying automobiles
Firms buying machines
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending: Consumption Investment
Buying medical equipment
Building hospitals
Paying workers to administer government programs
Building roads