Economics - Private Investment Expenditure (I)
Private Investment Expenditure (I)
This is spending by businesses/firms on capital goods. It includes
* 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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