Investment refers to change in stock during the year fixed or inventory
Answers
Explanation:
Fixed investment means investment in the machines, tools and equipment that businessmen buy for use in the further production of goods and services. ... This is in contrast to inventory investment whose components will be either used shortly for production or sold shortly to others for further production.
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Definition: Changes in inventories are the smallest component of the GDP, usually less than 1% of GDP but they are much more important than their absolute size. ... As the change in inventories is a flow equal to the change in the stock of unsold goods, they are a form of investment.
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Answer:
Fixed investment means investment in the machines, tools and equipment that businessmen buy for use in the further production of goods and services. ... This is in contrast to inventory investment whose components will be either used shortly for production or sold shortly to others for further production.
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Definition: Changes in inventories are the smallest component of the GDP, usually less than 1% of GDP but they are much more important than their absolute size. ... As the change in inventories is a flow equal to the change in the stock of unsold goods, they are a form of investment.
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