define investment ?how it is important for an economy ?Is it important for the economy?
Answers
Answer:
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Explanation:
define investment ?
Investment is an asset acquired or invested in to build wealth and save money from the hard earned income or appreciation. Investment is primarily made to obtain an additional source of income or gain profit from the investment over a specific period of time.
how investment in important?
Investment is a component of aggregate demand (AD). Therefore, if there is an increase in investment, it will help to boost AD and short-run economic growth. If there is spare capacity, then increased investment and a rise in AD will increase the rate of economic growth
Is it important for the economy?
Investment is a component of aggregate demand (AD). Therefore, if there is an increase in investment, it will help to boost AD and short-run economic growth. If there is spare capacity, then increased investment and a rise in AD will increase the rate of economic growth