Finance:Investment goods

In economics, investment goods are the goods that enable production, and are the main input into new installed capital.eg:-machine,factory,equipment etc

Investment goods are also known as capital goods (according to Economics). These goods are the products that have been already produced inorder to produce other valuable products or services over time.Capital goods are produced through the process of investment.

Investment goods don't become parts of the final products in spite they are used to produce those final products. The amount of investment goods determine the future standard of living of the economy.

One of the main decisions that a society has to make, while allocation of resources of the economy, is whether it will produce more of consumption goods or more of investment goods.

External sources

• A Simple Kaleckian Model, suggesting that total saving by the consumption goods sector is equal to total consumption by the investment goods sector.
• Investment Prices and Exchange Rates: Some Basic Facts, suggesting four basic facts about investment goods and investment prices.