2.2.3 Flashcards
1
Q
Gross investment
A
The amount that a firm invests in business assets that does not account for depreciations
2
Q
Depreciation
A
When something starts to lose value, such as a car loses value the older it gets
3
Q
Net investment
A
The actual addition to the capital stock of an economy, after depreciations have been considered
Net investment = gross investment- depreciation
4
Q
Influences on investment
A
- the rate of economic growth
- business expectations and confidence (animal spirits)
- demand for exports
- interest rates
- access to credit
- the influence of government and regulations
