Recent surveys of manufacturing firms indicate a significant downturn in business confidence, often described as a dampening of 'animal spirits'. With borrowing costs rising due to central bank interest rate hikes, many corporations are shelving expansion plans. Industry analysts warn that a prolonged contraction in spending on capital goods, such as new machinery and factories, will not only reduce aggregate demand in the short run but also impair the economy's long-run productive capacity.
Define the term 'investment' (Extract K).
