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Let's consider an economy in which firms spend $125 on machinery used in production and home buying totals $200. In addition, people buy $20 in stocks and bonds, and businesses add $70 to their inventories.

Given this information, calculate economic investment.

Answer :

The economic investment in this economy is $415.

The economic investment can be calculated by adding up the spending on machinery, home buying, stocks and bonds, and inventory. In this case, the spending on machinery is $125, home buying is $200, stocks and bonds is $20, and inventory is $70. To calculate economic investment, we simply add all of these values together: $125 + $200 + $20 + $70 = $415. Therefore, the economic investment in this economy is $415.

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