Investment refers to assets or items purchased with the hope that they will generate income or appreciate over time. There are three main types of investment: business fixed investment which is money spent by businesses on structures, equipment, and software; residential investment which includes expenses for constructing dwellings and buildings; and inventory investment which is money spent on raw materials and semi-finished goods that will later be processed into final products.

1. PresentatioPresentatio
n onn on
InvestmentInvestment

2. ContentsContents
 Definition of Investment.Definition of Investment.
 Types of Investment.Types of Investment.

3. InvestmentInvestment
Investment refers to an asset or itemInvestment refers to an asset or item
that is purchased with the hope thatthat is purchased with the hope that
it will generate income or appreciateit will generate income or appreciate
in the future.in the future.
Money committed or propertyMoney committed or property
acquired for future income.acquired for future income.

4. Investment DemandInvestment Demand
CurveCurve

5. Types ofTypes of
InvestmentInvestment
 Business Fixed Investment.Business Fixed Investment.
 Residential investment.Residential investment.
 Inventory Investment.Inventory Investment.

6. Business FixedBusiness Fixed
InvestmentInvestment
Business fixed investment isBusiness fixed investment is
expenditure by business onexpenditure by business on
structures, equipment andstructures, equipment and
software. Such investment issoftware. Such investment is
labeled ‘fixed’ to distinguish itlabeled ‘fixed’ to distinguish it
from investment in inventories.from investment in inventories.

7. ResidentialResidential
InvestmentInvestment
Residential investment is theResidential investment is the
expenses made forexpenses made for
construction activities likeconstruction activities like
dwelling, building new housesdwelling, building new houses
etc.etc.

8. InventoryInventory
InvestmentInvestment
Inventory investment is theInventory investment is the
expenses of buying raw-materials,expenses of buying raw-materials,
semi-finished goods to besemi-finished goods to be
processed into final goods.processed into final goods.