What is meant by "inducement to invest is hurt" ?
Answers
Answer:
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Explanation:
Inducement to Invest' or the investment function is the second component of Aggregate demand. Investment, according to Keynes, is the addition to real capital assets. ... It may be defined as the highest rate of return over cost expected from the marginal or additional unit of a capital asset.
ITS FACTORS ARE
Investment levels are influenced by:
Investment levels are influenced by:Interest rates (the cost of borrowing)
Investment levels are influenced by:Interest rates (the cost of borrowing)Economic growth (changes in demand)
Investment levels are influenced by:Interest rates (the cost of borrowing)Economic growth (changes in demand)Confidence/expectations.
Investment levels are influenced by:Interest rates (the cost of borrowing)Economic growth (changes in demand)Confidence/expectations.Technological developments (productivity of capital)
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.
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)