Question

What is private investment in economics upsc?

Answer 1

Private Investment is the investment which is made by the private individuals with the sole objective of earning profit. According to classical economist Keynes, there are two factors which decide the Private Investment viz. Marginal Efficiency of Capital (MEC) and Rate of Investment. It can be simply understood by the fact that the output in an economy depends upon the stock of capital. If there is an increase in stock of capital, the output increases. But, how much increase in investment in capital would raise the output, this would depend upon the productivity of new capital i.e. on the marginal efficiency of capital. 

Answer 2

investment is devided​ in to two types namely 1)private investment 2)public investment.....
1) private investment:- It is the investment which is made by private individuals with the sole objectives of earning profits.......

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