Question

Significance of Fixed Investment ?​

Answer 1

Explanation:Fixed investment also measures the amount of increase in the total stock of capital each year. Higher fixed investment implies a higher total stock of capital and output. iv. It plays a vital role in the cyclical movements in incomes as it initiates and supports the whole process of income creation

Answer 2

Answer:

Fixed investment also measures the amount of increase in the total stock of capital each year. Higher fixed investment implies a higher total stock of capital and output. iv. It plays a vital role in the cyclical movements in incomes as it initiates and supports the whole process of income creation.

• It implies the increase of stock of fixed capital of production
• It raises production capicity of firms and leads higher output
• Higher output leads higher economic rate of growth