Investment
Definition
Spending on new physical capital — equipment, structures, software, inventory. The "I" in GDP. Volatile and a key swing factor in recessions.
Example
A firm building a new factory or buying delivery trucks is investing.
Spending on new physical capital — equipment, structures, software, inventory. The "I" in GDP. Volatile and a key swing factor in recessions.
A firm building a new factory or buying delivery trucks is investing.