Macroeconomics/Investment

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Investment[edit]

Investment is the expenditure(E) on new capital equipment which will be used to produce final goods & services(g+s) in the future. It includes building construction, housing, etc.

Factors Affecting Investment:[edit]

The level of I is the most volatile component of AE, particularily because it is forward planning/focused.

Determinants[edit]

The level of investment in the economy is determined by:

think TWIGISPEC!
  • Private sector investment comprises 10-20% of AE.