Explain the Determinants of Investment

question 20

Essay

Explain the determinants of investment.Include in your answer an explanation of how a change in each determinant affects investment.

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Definitions:

Higher Wage

An increased rate of pay provided to employees, typically as a result of increased skill, productivity, or market pressures.

Labor Supply Curve

A graphical representation of the relationship between the wages on the vertical axis and the amount of labor willing to work at that wage on the horizontal axis.

Attitude Toward Work

Attitude toward work refers to an individual's overall outlook, feelings, and perceptions about their work, which can influence their job performance and satisfaction.

Substitution Effect

The alteration in buying behaviors resulting from shifts in relative prices, prompting consumers to swap costlier products with less expensive options.