Investment

HideShow resource information
  • Created by: Lottie
  • Created on: 30-04-12 09:27

INVESTMENT

  • spenidng on capital oods by firms and gov, which allow increased production of consumer foods and services in future time period

GROSS AND NET INVESTMENT

  • Net investment: positive when gross investment is higher than depreciation or capital consumtion- increase in nation's stock of capital
  • fixed investment:spending on new capital machinery& plant, construction,housing , vehicles etc.
  • working capital:spending on stocks of finished goods & raw materials-accumulation of stocks wheter in/voluntary= investment
  • Gross domestic fixed capital formation: expenditure on fixed assets

WHY DO FIRMS INVEST?

  • it implies a rise in the firm's capital stock & long run expansion in the size of a business
  • to take advantage of higher expected…

Comments

Kelly Founds

YOUR STUFF IS AMAZING!!!! KEEP IT UP XX

Similar Economics resources:

See all Economics resources »See all Macroeconomic indicators resources »