What is investment in the expenditure function?
Hi, so how should I categorize the purchase of an asset such as securities or bonds in terms of the expenditure function Y = C+I+G+NX ? I don't think it's investment... is it correct? Please, do answer only if you fell sure about it. Thanks.
Investment best answer:
Answer by Michael
Purchases of financial products is classed as saving. It is not classed as investment. If the company who issued the securities or bonds buys machinery,etc with your money, then it is this that will be classed as investment. To class both as investments will give rise to double-counting.
Investment
IMF Conference: Sustainable Investment scaling up in LIC
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IMF Conference: Sustainable Investment scaling up in Low Income Countries
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