Businesses have expected return rate {marginal efficiency of investment} (MEI) on latest dollar invested {investment}|. Current interest rate, profit availability, and business-cycle changes affect MEI. Purchasing capital, rather than consumer, goods can make more money in future.
Capital decreases value over time {capital depreciation} {depreciation}|, as it wears out, becomes obsolete, or requires repairs. Businesses must replace capital, or capital supply decreases over time. Net capital formation is gross capital formation minus depreciation.
In France, people can invest in an annuity fund, and, if a member dies, his or her shares distribute to the other members {tontime}.
6-Economics-Microeconomics-Money
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Date Modified: 2022.0225