This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the influence of the expected profit and the real interest rate on the amount of investment ... (Read 247 times)

anjilletteb

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
What is the influence of the expected profit and the real interest rate on the amount of investment firms make?
 
  What will be an ideal response?

Question 2

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the ________.
 
  A) classical growth theory
  B) modern theory of population growth
  C) neoclassical growth theory
  D) new growth theory


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jordangronback

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 29, 2018
Answer to Question 1

Firms make a decision about whether to undertake an investment based upon the benefit of the investment, the expected profit, versus the opportunity cost of making the investment, the real interest rate. For any particular investment firms compare the expected profit to the real interest rate. If the expected profit exceeds the real interest rate the firm will undertake the investment. If the expected profit is less than the real interest rate the firm will not undertake the investment.

Answer to Question 2

A


anjilletteb

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

smrtceo

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Cross-sectional data showing that the amount of effort spent on personal health care increases with Cross-sectional data showing that the amount of effort spent on personal health care increases with
Respiratory Rate Ranges of Various Age Groups Respiratory Rate Ranges of Various Age Groups
Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ... Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ...
Reaction 3: The Second Investment of ATP Reaction 3: The Second Investment of ATP
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
Video: Physiology of Asthma

For a complete list of videos, visit our video library