Investment
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Investment is goods purchased by individuals and firms to add to their stock of capital. Investment tax credit]]. A provision of the corporate income tax that reduces a firm's tax when it buys new capital goods. IS curve]]. The negative relationship between the interest rate and the level of income that arises in the market for goods and services. (Cf. IS–LM model, LM curve.)
Definition
According to Macroeconomics by Mankiw (7th edition),
- Investment. Goods purchased by individuals and firms to add to their stock of capital. Investment tax credit]]. A provision of the corporate income tax that reduces a firm's tax when it buys new capital goods. IS curve]]. The negative relationship between the interest rate and the level of income that arises in the market for goods and services. (Cf. IS–LM model, LM curve.)
