business economics

Investment Definition Economics

Investment Definition Economics   In economics, investment has a specific meaning compared to how it’s used in general finance. Here’s the breakdown: Economic Definition of Investment In economics, investment refers to the addition to the nation’s capital stock over a specific period, usually a year. This capital stock refers to physical assets used to produce goods and services. Examples include: Buildings and machinery Infrastructure like roads and bridges Software and information technology Inventories of raw materials and finished products Essentially,…