Net investment
Encyclopedia
In economics
, net investment refers to an activity of spending which increases the availability of fixed capital goods or means of production
. It is the total spending on new fixed investment
minus replacement investment, which simply replaces depreciated capital goods.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, net investment refers to an activity of spending which increases the availability of fixed capital goods or means of production
Means of production
Means of production refers to physical, non-human inputs used in production—the factories, machines, and tools used to produce wealth — along with both infrastructural capital and natural capital. This includes the classical factors of production minus financial capital and minus human capital...
. It is the total spending on new fixed investment
Fixed investment
Fixed investment in economics refers to investment in fixed capital, i.e., tangible capital goods , or to the replacement of depreciated capital goods which have been scrapped....
minus replacement investment, which simply replaces depreciated capital goods.