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Module 1: Economic activity

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Private Investment Expenditure (I)

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XSIQ
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Economics - Private Investment Expenditure (I)

Private Investment Expenditure (I)

This is spending by businesses/firms on capital goods. It includes
spending on:

* plant and equipment (factories and machinery)

* dwellings and non-dwelling buildings (houses and office blocks)

* stocks of goods (working capital).

This type of expenditure is a very important prerequisite for future
economic growth. It is considered a risk, and, as such, is a very sensitive
component. It accounts for approximately 15 per cent of aggregate demand.

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