Investment Flashcards
1
Q
What is the investment definition
A
Is when firms spend money on capital goods to increase their productive capacity
2
Q
What factors influence investment
A
Interest rates
Business confidence
Corporation tax
Spare capacity
Level of competition
Price of capital
3
Q
How does the accelerator link to investment
A
When there is an increase in the rate of real GDP in the economy, it encourages further investment
