The correct answer is Option (1) → (A), (B) and (C) only
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(A) The common notion is that investment is using money to buy physical or financial assets. This is a correct description of how the term is used in personal finance, referring to the purchase of stocks, bonds, real estate, etc.
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(B) From an economist's view, investment is capital formation. This is also correct. In macroeconomics, investment is defined as the addition of new capital goods to the economy, such as machinery, buildings, and inventories.
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(C) While measuring the final output, the portion which comprises capital goods, is the Gross Investment of an Economy. This is accurate. In national income accounting, the value of newly produced capital goods is counted as gross investment, which is a key component of a country's final output (GDP).
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(D) The common and economic view regarding investment does not make any difference. It is the same. This statement is incorrect. As shown above, there is a significant difference. The common view often refers to a change in ownership of existing assets, while the economic view refers to the creation of new, productive assets.
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