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

Author Question: Explain the relationship between the real interest rate and investment demand. Compare that ... (Read 94 times)

jho37

  • Hero Member
  • *****
  • Posts: 531
on: Jun 29, 2018
Explain the relationship between the real interest rate and investment demand. Compare that relationship to the relationship between expected profit and investment demand.
 
  What will be an ideal response?

Question 2

There is a man yelling for help on a crowded subway platform. What are two reasons that the man may not get the help he needs?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

The real interest rate determines the quantity of investment demanded. There is an inverse relationship between the real interest rate and the quantity of investment demanded. Expected profit affects investment. An increase in the expected profit from investing increases investment. Hence there is a positive relationship between investment and expected profit.

Answer to Question 2

Pluralistic ignorance and diffusion of responsibility are two possible reasons.


jho37

  • Member
  • Posts: 531
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Structure of the ovary and uterine (fallopian) tube. Figure illustrates stages of ovum development a Structure of the ovary and uterine (fallopian) tube. Figure illustrates stages of ovum development a
The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the
Factors influencing pulse rate Factors influencing pulse rate
The relationship between the permissible exposure limit (PEL), the short-term exposure limit (STEL), ... The relationship between the permissible exposure limit (PEL), the short-term exposure limit (STEL), ...
How to calculate compound interest (Part 1) How to calculate compound interest (Part 1)
The level of future emissions is closely linked to the rate of population growth The level of future emissions is closely linked to the rate of population growth
Video: Mechanisms for chromosome movement Animation

For a complete list of videos, visit our video library