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Economic Definition of investment determinant. Defined.

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Term investment determinant Definition: One of the ceteris paribus factors held constant when the investment line used in Keynesian economics is constructed. Some of the more important investment determinants are interest rate, technology, taxes, business confidence, cost of capital and expectations. A change in any of the investment determinants results in a shift of the investment line and a change in autonomous investment. This is just the sort of thing that triggers the multiplier effect. Business cycle instability is often traced to changes in investment determinants.


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