Explain how a decrease in the interest rate will affect autonomous investment
The interest rate is the cost of borrowing investment funds. When the interest rate decreases, then the cost
of borrowing falls, and so firms find it profitable to undertake additional investments. Therefore, we find an
inverse relationship between the interest rate and autonomous investment.
Economics
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Suppose this year Angola borrows $100 million from foreign countries, while it lends $15 million to other countries. Angola definitely is a
A) net borrower. B) net lender. C) creditor nation. D) debtor nation.
Economics
Refer to Table 2.3. Nominal GDP in 2010 is
A) $540.00. B) $568.00. C) $671.00. D) $812.00.
Economics