Investment
What Investment means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Investment
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Check what you remember
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Reference: Pearson Edexcel
Capital spending that is often delayed when uncertainty makes the expected return harder to calculate.
Firms' spending on capital, encouraged when lower base interest rates reduce the cost of borrowing.
Spending by firms on capital goods, driven by expected profits.
Topics that use Investment
- Circular flow of income, expenditure and output (Pearson Edexcel A-Level)
- Demand-side policies (Pearson Edexcel A-Level)
- Inflation (Pearson Edexcel A-Level)
Related terms
- Aggregate demand
- Demand-pull inflation
- Macroeconomic equilibrium
- Business uncertainty
- Cost-push inflation
- Deflation
- Disinflation
- Economic agents
Using Investment in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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