Business Studies, asked by llToxicBabeell, 5 days ago

Significance of Fixed Investment ?​

Answers

Answered by AshifaNaaz
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

Answered by ashauthiras
1

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

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