Factors which affects investment demand

Reference no: EM1313956

The investment demand curve is a useful tool to summarize an important and complex relationship in the economy. The determinants that may cause this Investment Demand Curve for the U.S. economy to shift are acquisition; cost of operation; maintenance of investment goods; business taxes; technological change; changes in stock capital goods on hand; and changing expectations about future profits from investments. Which of these factors are affecting the curve today (2009), and in which direction is it moving.

Reference no: EM1313956

Questions Cloud

Find real rate of interest : Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

Profit-maximizing combination of quantities for monopoly : She can charge different prices in the two markets. Illustrate what is the profit-maximizing combination of quantities for this monopolist.

Effect of monetary policy on usd : Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.

Kaufmanns offers only an hourly wag : Kaufmann's offers only an hourly wage. Do you expect Kaufmann's hourly wage to be higher or lower than Farleigh's.

Factors which affects investment demand : The investment demand curve is a useful tool to summarize an important and complex relationship in the economy. The determinants that may cause this Investment Demand Curve for the U.S. economy to shift are acquisition

Comparing value of test statistics : Compare value of test statistics F obtained in part(2) with value of t 2 , square of test statistic for testing H 0 : β 1 =0 that was needed in test null hypothesis that true slope is 0. Interpret the results of this test.

Difference between means using mean z test : To test the difference between two means using two mean z test.

Prepare an adjusted trial balance : Prepare an adjusted trial balance and Prepare an income statement, a statement of owner's equity, and a balance sheet.

What happens to velocity if the average price level falls : the average price level is $4 per unit also the quantity of money. Illustrate what happens to velocity if the average price level falls to $2 per unit, the money delivery is $2000 also real GDP is 4,000 units.

User Account

All Pages