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It is the ratio of the amount of money spent on investment in plant and capital - including stocks (inventories) over a period of time compared to the total output of the country (or region).

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Q: What does investment to GDP ratio mean?
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Related questions

What is tax-GDP ratio?

ratio of tax collection against the national GDP


What is definition of tax GDP ratio?

Tax to GDP Ratio =Total government tax collections divided by the country's GDP


How do you calculate the Import-GDP ratio?

it the ratio of between the total value of import and GDP


Why is investment so important to GDP?

investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.


Are mutual funds an investment or saving?

for GDP an investment is saving.


How does gold investment affects GDP?

Investment in Gold reduces supply of money needed for accelation in economic growth. To that extent that affects growth of GDP.


How is debt-to-GDP ratio calculated?

(primary balance/GDP)*100 .GDP decreases. Debt increases.


What resulted in the increase of GDP?

Greater levels of investment


What are two ways the debt to GDP ratio can increase?

GDP Decreases and Debt Increases


What are two ways the debt-to-GDP ratio increase?

debt increases and GDP decreases.


How is GDP calculated using the expenditures approach?

GDP = Consumption + Investment + Government Purchases + Net Exports


Why must saving equal planned investment at equilibrium GDP in the private closed economy?

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.