Investment expenditure__:
1. plays the role of Aggregate demand as well as Aggregate Supply
2. is one of the major determinants of economic growth
3. self terminating and self financing
Which among the above is / are correct statements?

Answer: [D] 1, 2 & 3

Main characteristics of investment expenditure

_ Most volatile component of GDP from demand / expenditure side

_ Pro-cyclical

_ Largely responsible for business cycles

_ Major determinant of economic growth

_ Dual role (Aggregate demand as well as Aggregate supply)

_ Self terminating and self financing

This question is a part of GKToday's Integrated IAS General Studies Module