Investment for Consumption and Business
Investment for Consumption and Business: The income is divided into two components, namely, consumption and investment. The amounts not consumed are saved and invested.
But investments are also useful for present and future consumption in the case of consumer durables, cars, gold and silver etc. But investments generally promote larger consumption in future as they lead to more income and larger capital appreciation in the years to come.
Some investments in business are used in trade and transport and other services. Thus, doctors, lawyers, traders etc. spend money for making investments for their business, which lead to further consumption or income.