Investment Function

Investment Function:

Investment has a particular meaning in economics. This means additions to the existing productive capacities (i.e., stock of fixed inventories and capital). They comprise fixed machinery, equipments, building, raw materials, substitution due to depreciation, and so on. It lays down the basis for future generation. Investment is the key in structural component of total expenditure or aggregate spending.

Through investment, Keynes means real investment, not the financial investment. Investment is the addition to actual capital assets. This does not mean the buy of bonds or shares that are financial investment. The distinction among consumption and investment is elementary in Keynesian theory. Significance of investment as a component of aggregate demand occurs due to the fact that it is other major component.

Consumption is a steady function of income. Therefore it was not possible to modify aggregate demand by modifying consumption expenditure as it based on income. Keynes found that investment is an independent expenditure determined independently of the degree of income. He found it to be the main cause for instability and variation in income and employment. The global depression of 1930s was also caused by a drop in investment.

Latest technology based Economics Online Tutoring Assistance

Tutors, at the, take pledge to provide full satisfaction and assurance in Theory of Income Determination help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Theory of Income Determination, project ideas and tutorials. We provide email based Theory of Income Determination help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Theory of Income Determination. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Theory of Income Determination. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.