2.2.3 Investment (I)

Question 1

Access to credit

Answer 1

The willingness and ability of financial institutions to land funds to producers and consumers

Question 2

Animal spirits

Answer 2

The state of confident or pessimism held by consumers and businesses

Question 3

Business confidence

Answer 3

A businesses expectations about the future of the economy

Question 4

Gross investment

Answer 4

total investment calculated by
New investment + replacement investment

Question 5

Interest rate

Answer 5

The price of borrowing, or the gain from lending.

Normally expressed as an annual percentage amount

Question 6

Investment

Answer 6

Spending on capital goods including plant and machinery and infrastructure

Question 7

Investment income

Answer 7

interest, profits and dividends from assets owned and located overseas

Question 8

Keynesian economics

Answer 8

???

Question 9

Net investment

Answer 9

total investment - replacement investment

Question 10

Replacement investment

Answer 10

The purchase of capital goods by firms to replace existing, worn out capital.
It does not add to the total capital stock of an economy