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Investment creates demand as much as consumption does, they are just different types of demand. Investment creates demand for capital goods, while consumption
by nickff 13y ago
Investment creates demand as much as consumption does, they are just different types of demand. Investment creates demand for capital goods, while consumption creates demand demand for corresponding goods.
- jasonwatkinspdx 13y agoThe market for capital goods is dependent upon the ultimate demand for the end goods. The cart most emphatically does not drive the horse, as anyone whose made malinvestment of capital can attribute.