Business fixed investment-Inventory Investment

Describe the following terms:

(i) Business fixed investment
(ii) Inventory Investment
(iii) Residential construction Investment
(iv) Public Investment.

Answer:

(i) Business Fixed Investment: This is the amount used up by the business units on the purchasing of newly formed plants and equipments.

(ii) Inventory Investment: This refers to the total change in inventories of final goods, semi finished goods, raw material and so on.

(iii) Residential Construction Investment: This is the amount spent on building of housing units.

(iv) Public Investment: This comprises all capital formation carried by the government like building of roads, hospitals, and schools.

View Complete Question

Related Questions in Macroeconomics

Q : EQUILIBRIUM GDP WHAT IS THE CHANGE IN

WHAT IS THE CHANGE IN EQUILIBRIUM gdp CAUSED BY THE ADDITION OF NET EXPORTS?

Q : Market price decrement according to

When heroin were legalized, in that case the: (w) market price of heroin would drop considerably. (x) demand would raise although supply would decrease. (y) demand would decrease but supply would increase. (z) price of cocaine would raise.

Q : McConnell Brue Flynn 19e What

What relationship does the MPC bear to the size of the multiplier

Q : Equilibrium The equilibrium interest

The equilibrium interest rate is determined

Q : Demand according to range of adjustments

As longer time periods are taken and a bigger range of adjustments (or substitutions) become obtainable, then demand curves tend to become: (1) flatter, as supply curves become steeper. (2) Steeper as supply curves become flatter. (3) Flatter, and therefore do supply

Q : Paradox of Value-total utility and

I have a problem in economics on Paradox of Value-total utility and marginal utility. Please help me in the following question. Water is more precious than diamonds when measured by _____, however less valuable when measured by _____. (i) Total cost, total benefit. (i

Q : Are government budget scarcities always

‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’

Q : Nominal GNP problem The value of

The value of nominal GNP of an economy was Rs. 2,500 crores in a specific year. The value of GNP of that country throughout the same year, computed at the prices of some base year was Rs.3000 crores. Evaluate the value of GNP deflator of the year in terms of percentag

Q : Physical quality of life index DISCUSS

DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.

Q : Would inflation targeting be a good

Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment?

Discover Q & A

Leading Solution Library

Avail More Than 1455530 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1938079
Asked

3,689

Active Tutors

1455530

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment