Investment types

Question 1

Investment Formula

Answer 1

Growth rate X capital output ratio

Question 2

Private investment

Answer 2

Spending by business or individuals on capital goods,
such as equipment, buildings and technology. Aimed at increasing production and building economic growth

Question 2

Government investment

Answer 2

Public spending on infrastructure, public services and other projects intended to promote economic growth, improve public welfare and enhance long term productivity

Question 2

Foreign direct investment (FDI)

Answer 2

investments made by a foreign entity in a countries business, assets or operations, typically through acquiring ownership or establishing new ventures with the aim of gaining a lasting interest or control

Question 3

Capital output ratio

Answer 3

The amount of capital required to produce 1 unit of output.
For investment, this helps assess how much investment is needed to achieve a specific economic growth rate