Cards (4)

  • Flow is a quantity per unit of time, a stock is the quantity that exists at a point in time, GDP flow is variable, savings and investments are also flow variables
  • Investment is defined as production today dedicated towards production of other goods and services in the future, is an annual flow that changes the stock capital.
  • Investment has an important role in the economy, and is one of the reasons why GDP grows and fluctuates.
  • Investment depends on many things including business confidence, government tax treatment, foreign direct investment, political stability, long-term interest rates, macroeconomic performance and things such as brexit