ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: –Investment is an important part of the development of the economy.-In a long term perspective of macro economic, investment will lift the capital stocks; and any addition in capital stocks will increase the production capability of the society which in turn will accelerate the economic growth.

Detailed explanation-2: -Capital expenditure, which leads to the creation of assets are long-term in nature and allow the economy to generate revenue for many years by adding or improving production facilities and boosting operational efficiency.

Detailed explanation-3: -Interest Rates and Monetary Policy. Interest rate fluctuations have a substantial effect on the stock market, inflation, and the economy as a whole. 2 Lowering interest rates is the Fed’s most powerful tool to increase investment spending in the U.S. and to attempt to steer the country clear of recessions.

Detailed explanation-4: -Investment Expenditures: This is the more specific term referring to actual expenditures on goods and services, or gross domestic product, by the business sector. Investment expenditures specifically deal with investment activities that involve business purchases of capital goods.