Macroeconomics/Investment

InvestmentEdit

Investment is the expenditure(E) on new capital equipment which will be used to produce final goods & services(g+s) in the future. It includes building construction, housing, etc.

Factors Affecting Investment:Edit

The level of I is the most volatile component of AE, particularily because it is forward planning/focused.

DeterminantsEdit

The level of investment in the economy is determined by:

think TWIGISPEC!
  • Private sector investment comprises 10-20% of AE.