Explain how a decrease in the interest rate will affect 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 investment spending.
Economics
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In the figure above, if no one owns the lake, what is the equilibrium price of the pesticide?
A) $80 per ton B) $40 per ton C) $60 per ton D) $30 per ton
Economics
In the long run in perfect competition, producer surplus equals zero
Indicate whether the statement is true or false
Economics