fixed investment


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Fixed-Income Security

A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times. Typically, fixed-income securities offer lower risk and lower returns than common stock and similar investment vehicles.

fixed investment

any INVESTMENT in plant, machinery, equipment and other durable CAPITAL GOODS. Fixed investment in the provision of social products like roads, hospitals and schools is undertaken by central and local government as part of government expenditure. Fixed investment in plant, equipment and machinery in the private sector will be influenced by the expected returns on such investments and the cost of capital needed to finance planned investments.

Investment is a component of AGGREGATE DEMAND and so affects the level of economic activity in the short run, while fixed investment serves to add to the economic INFRASTRUCTURE and raises POTENTIAL GROSS NATIONAL PRODUCT over the longer term.

In the short run, expected returns from an investment in plant will depend upon business confidence about sales prospects and therefore plant utilization. The volatility of business EXPECTATIONS means that planned levels of investment can vary significantly over time, leading to large changes in the demand for capital goods (see ACCELERATOR), i.e. large fluctuations in the investment component of aggregate demand leading to larger fluctuations in output and employment through the MULTIPLIER effect. See BUSINESS CYCLE, INVENTORY INVESTMENT, MARGINAL EFFICIENCY OF CAPITAL/INVESTMENT.

References in periodicals archive ?
Real Private Fixed Investment by Type, Chained Dollars
Duval County Public Schools (DCPS or the District) is seeking written quotations from qualified financial institutions, which includes being authorized as a Qualified Public Depository (QPB) in the State of Florida, for the provision of custodial services for fixed investment funds in conjunction with the district s contracted Investment Management firms.
The report, which was likely affected by notably harsh winter weather in the first quarter, reflects a slowdown in personal consumption as well as declines in fixed investment and net exports, as U.
Increases in motor vehicle, machinery, and other durable goods production will all support growth in fastener markets as the global economy expands and fixed investment expenditures rise.
A little over a year ago in these pages we documented the sluggish recovery of private fixed investment since the end of the recession.
The real disappointment was very modest fixed investment growth of 0.
Fixed investment trend had also been remained depressive in last financial year 2011-12 as it showed 0.
8 percent reflects positive contributions from personal consumption, private inventory investment, exports, and non-residential fixed investment.
Specifically, the increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, private inventory investment, nonresidential fixed investment, exports, and federal government spending that were partly offset by a negative contribution from residential fixed investment.
It's interesting, as an aside, that many advisors use bond mutual funds as a fixed investment, when their value can shift significantly.
REAL GROSS PRIVATE DOMESTIC INVESTMENT In the first quarter of 2009, according to advance estimates, nonresidential fixed investment in chained (2000) dollars fell $150.
In other words, more than 90 percent of the fixed investment around the world is still domestic.