Capital invested in fixed assets.
- Firms are most likely to invest in new fixed capital when the prospects for an upturn appear strong, and least likely to invest at the end of an upturn, when markets appear saturated, or during the downturn that follows.
- The ability of monetary policy actions to affect the private sector's incentive to invest in fixed capital is hotly debated.
- While working capital management has been excellent, fixed capital investment has been high as the company builds scale to cope with customer consolidation.
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