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    ure is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may
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    In the modern world, an act of investment involves a great amount of risk. This is also applicable while investing in real estate. It means locking up funds for long time in the hope of getting profits as a reward over the expected economic life of the capital asset.

    When a builder installs a new machine; he is undertaking an act of investment, expecting to reap profits in the future from the sale of the output of the machine. But the future by its very nature is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may

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    n real estate. It means locking up funds for long time in the hope of getting profits as a reward over the expected economic life of the capital asset.

    When a builder installs a new machine; he is undertaking an act of investment, expecting to reap profits in the future from the sale of the output of the machine. But the future by its very nature is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may

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    When a builder installs a new machine; he is undertaking an act of investment, expecting to reap profits in the future from the sale of the output of the machine. But the future by its very nature is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may

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    t, expecting to reap profits in the future from the sale of the output of the machine. But the future by its very nature is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may
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    ure is uncertain. It is quite possible that when the machine is ready for production, the demand for its product may no longer be there, so that instead of profits there may be losses.

    The great uncertainty about the future gives rise to the extreme instability and fluctuations in the rate of investment in modern capitalist economies. To compensate them for bearing these risks, the investors want a high enough rate of profit so as to induce them to take such risks. If this rate of profit is not adequate, the inducement to invest will be very weak.

    The investors in r

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