How each of the given factors contributed to the changes

Reference no: EM132126441

Question: The ratio of capital spending to GDP rose sharply during the latter 1970s, even though bond yields rose sharply during that period. It then increased even further during the early 1980s, when bond rates peaked. When bond rates declined during the latter half of the 1980s, the ratio of capital spending also fell. Explain how each of the following factors contributed to these changes.

(A) The nominal rate of interest.

(B) The real rate of interest.

(D) The rate of capacity utilization.

(E) The relative price of capital goods.

Reference no: EM132126441

Questions Cloud

What do you think would happen to total consumption : Suppose the government decided to levy the current 15.3% social security tax on all levels of wages and salaries, not just the first $80,000.

Is it sufficient to adequately address future challenges : How would you assess the current model of shared responsibility between the government security and private sectors?

How would the changes affect current consumption plans : According to legislation as of late 2002, the death tax (estate tax) is supposed to be fully phased out by the year 2010, but then reinstated at a maximum.

Enforcing laws governing weights and measures routinely : A federal agency responsible for enforcing laws governing weights and measures routinely inspect packages

How each of the given factors contributed to the changes : The ratio of capital spending to GDP rose sharply during the latter 1970s, even though bond yields rose sharply during that period.

Find the probability of event c or event d occurring : C=the card drawn is a king; D-the card drawn is a heart. Find the probability of event C or event D occurring

Bookstores order books that instructors adopt for the course : University bookstores order books that instructors adopt for the courses. The number of copies order matches the projected the demand.

Round p-values to four decimals and include the leading zero : Round p-values to four decimals and include the leading zero.

What were principal factors that caused ratio of purchase : What were the principal factors that caused the ratio of the purchase of producers' durable equipment to GDP to rise so much during the 1990s?

User Account

All Pages