Question

State the factors that determine investment in an economy

Answer 1

Determining your requirements: Follow the path that helps you achieve your short-term and long-term goals. ...

Risk Tolerance: How much risk can you tolerate in the long run? ...

Income Level: ...

Tax Liability: ...

Total Wealth: ...

Investment Time Horizon: ...

Liquidity Payment:

Answer 2

Answer:

Summary – Investment levels are influenced by:

Interest rates (the cost of borrowing)

Economic growth (changes in demand)

Confidence/expectations.

Technological developments (productivity of capital)

Availability of finance from banks.

Others (depreciation, wage costs, inflation, government policy)