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In fact, we learned the true meaning of investment " expenditures on ( production of ) new plant and equipment ( capital ) in a given time period, plus changes in business inventories " before taking ECO 101 most of us thought investment is invest capital on stock market or purchase bonds but that were assist transfers.
In addition, Adam Smith's the invisible hand and laissez faire are emphasized the capitalize and free market, which is basic supply and demand let market works on its own without government intervenes, but United States economy was in trouble during the Great Depression in theory thing go to the top would fall and the economic down to the button would eventually go back on track, but the questions were when and how long we have to wait for the economic to bounce back, can we wait that long? The Englishman Keynes felt that private business sectors were unstable, therefor the government intervention was the key out off the Great Depression, this is the chapter 10 The Business Cycle...
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