3- Investment definitions Flashcards
1
Q
Investment
A
Spending by businesses on capital goods, which leads to the creation of real goods.
2
Q
Gross investment
A
Investment both to replace old machinery that depreciated and to create/buy new ones.
3
Q
Net investment
A
Investment adjusted for depreciation.
Gross investment - Depreciation
4
Q
Animal spirits
A
The level of confidence of business owners.
5
Q
Retained profits
A
Profits kept by a firm and not shared with shareholders or used to pay taxes.
