How does an increase in investment spending on capital goods affect GDP, particularly when considering changes in net exports?

When businesses increase their investment spending on capital goods, like machinery and buildings, it boosts the economy by contributing to GDP, which stands for Gross Domestic Product. This spending creates jobs and increases production capacity, allowing companies to produce more goods and services. For example, if a factory buys new equipment, it can make more products, leading to higher sales and profits. However, if the country is importing more goods than it is exporting, this can reduce the positive impact on GDP because imports are subtracted from the total. Therefore, while increased investment spending generally raises GDP, the overall effect can be influenced by changes in net exports, meaning the balance between what a country sells to others and what it buys from them.