Question

In principle, what might be possible causes of the observed diminishment of the rightward shifts of Germany's investment function over time? (Hint: Recall that changes in productive technology or business tares affect levels of planned investment spending.)

Short answer

Executives repeatedly emphasized Germany's existing competitive advantage in terms of the country's well-established technical networks, which enable efficient information and experience sharing.

Step-by-step solution

Introduction.

Purchases of machinery, land, factors of production, or infrastructure are examples of investment spending.

Investing expenditure differs from investment, which is the acquisition of assets such as stocks, securities, and futures. Another name for it is capital formation.

Germany's investment function.

The repercussions of the global economic crisis in Germany were as follows: industrial production in Germany fell by $40\%$during this period. Inflation was strong, and the currency had depreciated as a result. There was a lot of unemployment, so people stood on the side of the road announcing that they would do any job.