What does the investment demand curve show?
What will be an ideal response?
The investment demand curve shows the demand for capital in the economy as a function of the market interest rate. Only those investment projects that are expected to yield a rate of return higher than the market interest rate will be funded. Lower interest rates should stimulate investment.
Economics
You might also like to view...
Which of the following shows the relationship between employees and their peers?
a. organizational chart b. gantt chart c. decision tree d. simulation
Economics
The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?
What will be an ideal response?
Economics