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Answer to Question #31229 in Macroeconomics for meera pothunnah

Question #31229
what factors can cause an increase in investment
Expert's answer
Investment growth is the expansion of production in a particular sector of the national economy, and vice versa - the decline in investment reflects the
process of phasing out the production and consumption of the industry.

The overall economic and political situation in the country, the state of
foreign trade, currency exchange rate, new discoveries in science and
technology, the discovery of new sources of raw materials, changes in the
demand structure of the population, the size of his income, etc. affect
the investment increase.
The main factors affecting the size and dynamics of investments are:
Income, namely that part of it which is going to send the company for further expansion and modernization of production.Amount of money and the payback period. Ceteris paribus, the lower the capital investment and payback period, the greater
the desire to invest.Interest rate.Taxation. At low levels of commitment to capital investment is increasing dramatically.The expected return on investment. If capital investment is directed in promising industries with new efficient
technologies, whose goods will be in demand for a long time, it is
realistic to expect a high return on investment in the future and vice
versa.

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