Economics- Edexcel 2.2.3
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| show | spending on capital goods including plant & machinery and infrastructure
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| show | cultivated assets, intellectual property products and other buildings or structure
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| show | animals and plants that are managed by humans and that provide repeat products to their owners
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| show | funds which are available to finance the production or acquisition of real capital
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| gross investment | show 🗑
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| net investments | show 🗑
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| gross investment is higher than capital consumption | show 🗑
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| show | actual and expected demand/cost of capital(rate of interest on loan or opportunity cost)/business taxes(post-tax returns on projects)/state of business confidence(animal spirits)/pace of changing tech
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| Keyne’s animal spirits | show 🗑
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| show | individuals and businesses save more and as demand and profits are less, cut back on production and postpone/cancel capital investment projects(economic activity will suffer)
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| paradox of thrift | show 🗑
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| accelerator effect | show 🗑
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| show | a given change in demand for consumer goods and services causes a bigger percentage change in demand for capital goods, expecting sustained demand firms increase spending and investment to increase supply capacity
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| show | when demand in an industry slows, net investment spending by businesses falls
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| infrastructure | show 🗑
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| show | UK lacks in quality of infrastructure assets
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| why does the UK lack in infrastructure? | show 🗑
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| why do we need infrastructure? | show 🗑
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| FDI | show 🗑
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