INVESTMENT expenditure refers to the CREATION of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon two FACTORS: (a) Expected rate of profit which he calls as Marginal Efficiency of Capital (MEC). Investment demand increases with the INCREASE in the expected rate of profit; (b) the rate of interest (IR). Investment demand decreases with the increase in the rate of interest. "> INVESTMENT expenditure refers to the CREATION of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon two FACTORS: (a) Expected rate of profit which he calls as Marginal Efficiency of Capital (MEC). Investment demand increases with the INCREASE in the expected rate of profit; (b) the rate of interest (IR). Investment demand decreases with the increase in the rate of interest. ">
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Who defined investment as the construction of a new capital asset like machinery or factory building ?

Economics Economics miscellaneous in Economics 5 months ago

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INVESTMENT expenditure refers to the CREATION of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon two FACTORS: (a) Expected rate of profit which he calls as Marginal Efficiency of Capital (MEC). Investment demand increases with the INCREASE in the expected rate of profit; (b) the rate of interest (IR). Investment demand decreases with the increase in the rate of interest.
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Posted on 01 Jun 2025, this text provides information on Economics related to Economics miscellaneous in Economics. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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