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What Should Be Included in Investment? Investment is the sum of business fixed investment {structures and equipment]. residential investment, and the change in inventories. But

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What Should Be Included in Investment? Investment is the sum of business fixed investment {structures and equipment]. residential investment, and the change in inventories. But if investment is the purchase of goods and services that will increase productive capacity in the long run, then several important categories, such as education, are left out. . Should spending on education, infrastructure, and health and nutrition programs be included in investment? Explain. - What about the provision of roads, railroads, airports, communication facilities, and power plants to an area? Explain. . Does you answer change depending on who provides the project? (ie. government or private sector) Explain. Should Nations Always Avoid Current Account Deficits? There is a strong feeling that nations shouldn't run deficits in their current accoonts. Like individuals, nations are expected to save and thus increase reserves to cope with future difficulties. Use examples from a country of your choice (ie. Canada, China, etc...) to explain the following questions. - ls running a balanced current account generally a good idea? Why or why not? Explain. . Can current account deficits benefit a nation? Why or why not? Explain. Hint: Think about what a current account deficit would do to consumption and investment. 300 word for each (3)

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