Question:
The three categories of investment spending are residential investment (housing), inventory investment, and business fixed investment. What determines each of these?
Investment spending:
Investment spending can be described as a term that refers to the attempt of stimulating the economic production through the methods of acquiring or creating capital goods. Capital goods are the goods that are used and apply in the manufacture and creation of other goods and they can include machines and equipment. It is the injection into the circular flow of income.
Answer and Explanation:1
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The three categories of investment spending namely; business fixed investment, residential investment (housing), and inventory investment tend to be...
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