Where the words come from
Investment as spending on new capital goods and its four categories, firms weighing expected profits against the interest rate, the interest rate as the opportunity cost of a firm's own funds, expectations of a growing market and business confidence encouraging investment, tax incentives making investment more or less attractive, depreciation as capital worn out or reduced in value with age, and banks becoming much less willing to lend in bad times so that credit becomes expensive or unavailable — Principles of Economics 2e, OpenStax, licensed CC BY 4.0. https://openstax.org/books/principles-economics-2e/pages/25-1-aggregate-demand-in-keynesian-analysis and https://openstax.org/books/principles-economics-2e/pages/19-1-measuring-the-size-of-the-economy-gross-domestic-product and https://openstax.org/books/principles-economics-2e/pages/28-5-pitfalls-for-monetary-policy. Changes: 25.1's four categories condensed ("producer's durable equipment and software, nonresidential structures, changes in inventories, and residential structures" to machinery and software, factories and offices, additions to firms' stocks, and new homes); 25.1's expected profits, interest rates and own-funds opportunity cost condensed; 19.1's depreciation condensed; 28.5's leverage-cycle sentences cut to banks' willingness to lend (the explain block carries the GOV.UK source id because it also carries the full expensing date). Ours: gross and net investment, the haulage and bakery figures, the ID curve and its chart, the shift of the curve, animal spirits and its attribution to Keynes, the link to faster expected growth, planning delay, the mistake note and the recap; British spelling.
Full expensing: companies may deduct 100 per cent of the cost of qualifying new and unused plant and machinery, bought from 1 April 2023, from their profits before tax in the year it was bought — Claim capital allowances: Full expensing and 50% first-year allowance, GOV.UK, Open Government Licence v3.0. https://www.gov.uk/capital-allowances/full-expensing. Changes: "deduct 100% of the cost of qualifying plant and machinery from your profits before tax in the year it was bought" recast as "deduct the whole cost of qualifying new plant and machinery bought from April 2023 from their profits before tax in the year they buy it"; the 50 per cent allowance and the exclusion of cars dropped.
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