Investment Flashcards
1
Q
what is the definition of investment in economics
A
in economics its solely about the purchase of business capital/the addition to the economy capital stock
2
Q
what is gross investment
A
the total amount the economy spends on new capital, this figure includes the estimated value of capital depreciation
3
Q
how is net investment calculated
A
gross investment-capital depreciation
4
Q
what are factors influencing planned business investment
A
-Actual and expected demand for goods & services
-expected profits and business taxes
-interest rates and availability to finance
