Private investment spending is the most variable factor in the economy owing to the fact that it is not affected by government policies. Private investors make their own individual decisions concerning how, when, and what to invest, making private investment decisions different from public investment decisions. Policymakers can, however, try to stabilize this by setting policies such as price controls and investment controls in different regions. This will ensure that any investment decision made is in line with the policies hence stabilizing the private investment spending.
Why is private investment spending so variable? How can policymakers try and stabilise it?
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Academic.Tips. (2021) 'Why is private investment spending so variable? How can policymakers try and stabilise it'. 22 July.
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Academic.Tips. (2021, July 22). Why is private investment spending so variable? How can policymakers try and stabilise it? https://academic.tips/question/why-is-private-investment-spending-so-variable-how-can-policymakers-try-and-stabilise-it/
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Academic.Tips. 2021. "Why is private investment spending so variable? How can policymakers try and stabilise it?" July 22, 2021. https://academic.tips/question/why-is-private-investment-spending-so-variable-how-can-policymakers-try-and-stabilise-it/.
1. Academic.Tips. "Why is private investment spending so variable? How can policymakers try and stabilise it?" July 22, 2021. https://academic.tips/question/why-is-private-investment-spending-so-variable-how-can-policymakers-try-and-stabilise-it/.
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Academic.Tips. "Why is private investment spending so variable? How can policymakers try and stabilise it?" July 22, 2021. https://academic.tips/question/why-is-private-investment-spending-so-variable-how-can-policymakers-try-and-stabilise-it/.
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"Why is private investment spending so variable? How can policymakers try and stabilise it?" Academic.Tips, 22 July 2021, academic.tips/question/why-is-private-investment-spending-so-variable-how-can-policymakers-try-and-stabilise-it/.
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