Economics Part B

Table of Contents


What is Investment – The General Idea

To explain what is investment seems to be a complicated task. But for you to make an initial step in understanding what is investment, it is defined generally in this context.

Investment is an expenditure of money not for ongoing consumption, but for future use or for something that will give benefit in the future, such as: the purchase of machinery, equipment, buildings, investment in infrastructure development (roads, railroads etc.), the purchase of securities and so on.