Chapter 29 - Investment Flashcards
1
Q
Variable affecting investment
A
Rate of interest, rate of economic growth, costs, business confidence, the world economy, retained profit, availability of credit, government and regulations
2
Q
Gross investment -
A
The addition of capital stock overall. To use for depreciation and new capital
3
Q
Investment
A
The addition of capital stock in an economy
4
Q
Net investment
A
Gross investment minus depreciation
5
Q
Retained profit
A
profit kept back by companies for its own use (not given to shareholders or gov)
6
Q
Depreciation or capital consumption
A
the value of capital stock that has been used up or worn out
