2.2.2 - Investment Expenditure
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Practice Questions
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What is investment expenditure?
💡 Hint: Think about what businesses buy to help them produce.
Give two examples of capital goods.
💡 Hint: Consider what is necessary for manufacturing.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What type of spending does investment expenditure refer to?
💡 Hint: Focus on who spends money on resources for production.
Is investment expenditure relevant for GDP calculations?
💡 Hint: Consider if investment by businesses contributes to overall economic output.
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Challenge Problems
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Evaluate a scenario where a company drastically increases its investment expenditure amidst economic uncertainty. What are the possible short-term and long-term effects on the economy?
💡 Hint: Consider how fluctuations in demand might impact business operations.
Formulate a policy recommendation for a government looking to boost investment expenditure in a recession. What specific measures should be taken?
💡 Hint: Focus on ways to make it more attractive for businesses to invest during challenging economic times.
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