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Investment Spending

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Both in the short run and in the long run, investment is the engine of growth. Why is this so? What are the things the government does or could do to induce private investment spending rather than induce comsumption spending, and are there any specific sectors of the economy that should be targeted?

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Capital is examined for investment spending.

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Capital is the primary source of creation of wealth and investments can ensure the optimal allocation and management of available (material and immaterial) resources. Investment is typically a demand variable. In the short run the quantity (and quality) of some inputs cannot be changed. Marginal cost is a basic determinant in short-run decisions. Investments are ...

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Umut Oltulu, MBA
Education
  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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