What are the major types of investment? By which economic variables are they influenced? Such as gross investment, inventory investment, and residential construction.
important types of investment are:
(1) Business Fixed Investment, (2) Residential Investment, (3) Inventory Investment, (4) Autonomous Investment, and (5) Induced Investment.
Investment are influenced by following economic factors:
Interest rates (the cost of borrowing)
Economic growth (changes in demand)
Confidence/expectations
Technological developments (productivity of capital)
Availability of finance from banks.
Others (depreciation, wage costs, inflation, government policy)
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