Money spent to purchase new machinery or buildings or training so as to be able to increase/modernise production in the future is called

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Investment

Purchase

Expenditure

Consumption

answer is A.

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Detailed Solution

Money spent to purchase new machinery or buildings or training so as to be able to increase/modernise production in the future is called an investment.
An investment can be in the form of time, money, effort, etc. During investing, one hopes for a more significant payoff in the future than what was primarily put in. An investment can refer to any medium used to generate future income. It includes bonds, stocks, real estate property, or a business. Thus, when money is spent on new machinery, buildings or training to increase/modernise production, it will create significant payoff in the future.

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