Business investment
What Business investment means in Economics GCSE, as defined for AQA.
Definitions of Business investment
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Reference: AQA
Producers purchasing capital goods such as machinery, which higher interest rates generally decrease and lower interest rates encourage.
Funded by high street banks lending capital to firms for expansion, purchasing machinery, or research and development.
Topics that use Business investment
- Interest rates, saving, borrowing, spending and investment (AQA GCSE)
- The role and importance of the financial sector for the economy (AQA GCSE)
Related terms
- Financial institutions
- Bank of England
- Building societies
- Central banking
- Commercial banking
- Compound interest
- Cost of borrowing
- Financial intermediation
Using Business investment in the exam
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