The main determinants of investment are the interest rate and expected profit.

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According to most economic theories, the interest rate and expected profit are the main determinants of investment. When interest rates are low, it becomes cheaper for firms to borrow money to invest in new projects, leading to higher investment. Similarly, if a company expects that a particular investment will generate significant profits, it is more likely to undertake that investment. Other factors, such as government policies, technological advancements, and overall economic conditions, may also impact investment decisions, but interest rates and expected profits are considered the primary determinants.

The Main Determinants of Investment Are the Interest Rate and Expected