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 235 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
Excellent

TheNamesImani

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
A nurse adjusts the rate of a client’s IV. A nurse adjusts the rate of a client’s IV.
Expected and Unexpected Reinforcers Expected and Unexpected Reinforcers
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670 New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Three factors that influence the distribution of Na+ and K+ ions across the neural membrane. Three factors that influence the distribution of Na+ and K+ ions across the neural membrane.
Video: Polysaccharides

For a complete list of videos, visit our video library