investment economics

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  • Created by: ishah
  • Created on: 11-05-13 12:49
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  • investment
    • capital investment
      • capital goods - increased consumer g&s for future
    • financial investment
      • stocks & shares
    • types
      • fixed capital - machines
      • human-capital
      • working-capital - stock
      • infrastructure
    • gross investment
    • net investment
      • excl replacments
    • capital stock
      • productive capacity
        • increases when net investment is +
      • factor of LRAS
    • motivation capital investment
      • capacity ^
      • efficiency through techno
      • economies of scale
      • competitive
    • importance
      • adds economy's productive capacity
      • + multiplier effect
    • can be done
      • fiscal
        • low tax
        • G on infrastucture
      • monetary
        • low interest

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