--%>

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.

   Related Questions in Macroeconomics

  • Q : Development economics Government tax

    Government tax and transfer payments generally

  • Q : Relevance of matter-SWOT analysis

    Relevance of matter: Relevance of matter is very much important while choosing any goals. Are the goals relevant to the vision of the company? A goal of having maximum number of customers seems fantabulous, however at the same time bank needs to make

  • Q : Collecting cost-Revenue data from

    Collect cost, revenue data or other relevant data from the airbus industry and describe how you would modify the data to make it relevant to decisions a manager should make.

  • Q : Inflation Inflation is frequently

    Inflation is frequently described as "too much money chasing too few goods." Is this a satisfactory definition?

  • Q : Problem on production function Consider

    Consider a model economy with a production function Y = K0.2(EL)0.8, where K is capital stock, L is labor input, and Y is output. The savings rate (s), which is defined as

  • Q : Total revenue when price modify When

    When total revenue to a firm is unaffected by small price modifications, then demand is: (i) Relatively price elastic. (ii) Relatively price inelastic. (iii) Unitarily price elastic. (iv) Vertical. (v) Horizontal. Can someone help

  • Q : Domestic Investment & Economies

    Question: How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, investment in both economi

  • Q : Problem on full employment level of

    What happens when AD > AS past to full employment level of employment?

  • Q : Definition of equilibrium price

    Definition of equilibrium price: It is the price which balances quantity demanded and quantity supplied. The equilibrium price is frequently termed as the "market-clearing" price since both buyers and sellers are p

  • Q : Impact on income due to price of excess

    What is the impact on income or output and price of excess demand (Inflationary gap)? Answer: In the condition of excess demand (that is Inflationary gap) there wil