investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.
Investment in Gold reduces supply of money needed for accelation in economic growth. To that extent that affects growth of GDP.
Investment GDP includes spending on business equipment, structures, and residential construction. It also includes changes in business inventories.
GDP = Consumption + Investment + Government Purchases + Net Exports
Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.
Investment
for GDP an investment is saving.
Investment in Gold reduces supply of money needed for accelation in economic growth. To that extent that affects growth of GDP.
Investment GDP includes spending on business equipment, structures, and residential construction. It also includes changes in business inventories.
Greater levels of investment
Basically, GDP=AE=Y where AE is aggregate expenditure and Y is income. Y=C+I+G+(X-M) C is consumption, I is investment, G is government spending, X is exports and M is imports. So increased investment can lead to increased GDP. In a bit more detail: I can be broken down into: Investment=I0 - bi where I0 is 'autonomous' investment (as in firms will do it nor matter what). i is the interest rate and b is the marginal propensity to invest. So, as interest rates increase, the cost of investing increases and so investment decreases.
GDP = Consumption + Investment + Government Purchases + Net Exports
Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.
Investment
teeth
Greater levels of investment
The more you invest in human capital the higher your GDP goes.
stocks and bonds.