Factors of Production
Capital
Need to KnowAt the end of this section the student should be able to:
• Define capital • Define investment • Define the marginal efficiency of capital • Capital Widening and Capital Deepening • Explain the difference between fixed capital and social capital • Outline the factors that affect investment • Outline how the Irish government might encourage investment • Outline the reasons for FDI in Ireland • Outline the factors that determine the interest rate • Outline the effects of rising interest rates • Explain and illustrate the classical theory of loanable funds • Explain the theory of liquidity preference • Outline the factors that influence saving |
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