What Is the Difference Between Economic and fiNancial Investments

Multiple Choice

What is the difference between economic and financial investments?

A) Financial investments are sensitive to interest rates; economic investments are not.
B) Economic investments add to the capital stock of an economy; financial investments do not.
C) Economic investments are expressed in real (inflation-adjusted) terms; financial investments are expressed in nominal terms.
D) Financial investments include all purchases undertaken with the expectation of financial gain; economic investments include only purchases of new capital goods.