For 10 points, name this most volatile component of the GDP, consisting of the purchase of new capital in the hope of generating future profit.
Its relationship with output growth is considered under the "flexible- accelerator model." Due to globalization, the "foreign direct" kind of this may render obsolete the hypothesis that this quantity must equal savings in the long run. It is still known to change directly with change in inventory sales, and inversely with interest rates. For 10 points, name this most volatile component of the GDP, consisting of the purchase of new capital in the hope of generating future profit.
Its relationship with output growth is considered under the "flexible- accelerator model.
{investment}