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Determinants of investments:
Expected Rate of Return:
Investment spending is guided by the profit motive; thebusiness sector buys capital goods only when it expects such purchases to be profitable.Real interest rate:
Business firms typically borrow funds to make an investment and to repay their borrowings out of future revenues. Even if they do not borrow, managers know that if they use current revenues to finance investment purchases, they forgo the opportunity to earn interest.The annual opportunity cost of using a cedi to make an investment can therefore be represented by the real interest rate. The real interest rate is the price of using a cedi to make an investment purchase. Thus, the higher the real rate of interest, the less would be the profits to the business after paying interest and the less it will want to invest and vice versa.
How does production possibility curve help solve central problems?
Demand Function is Homogeneous of Degree Zero: Mathematical Presentation we will show that demand function is homogeneous of degree zero in prices and money income. In o
find the highest premium find the actuarialy fair premium
Question 1 (9 marks) During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following mark
Separate Administrative Set-up for Exports: It may be worth examining the setting up of Foreign Trade Board, similar to what obtains in Japan (JETRO) and South Korea (KETRO)
can you help me figure out how to create a graph with little or no information
What is Economic Theory? An economic theory that can be considered an axiomatic approach comprise a set of assumptions and circumstances, an analytical framework and explanatio
They take deposits which mean borrow money and make loans which means lend money. The interest rate they pay on the deposits is less than the interest rate they charge on their loa
How to I calculate the break-even point per unit in dollar amount and then determine whether there will be a profit or loss? Such as if the fixed costs were $75000. The variable co
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