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Determinants of investments:
Expected Rate of Return:
Investment spending is guided by the profit motive; thebusiness sector buys capital goods only when it expects such purchases to be profitable.Real interest rate:
Business firms typically borrow funds to make an investment and to repay their borrowings out of future revenues. Even if they do not borrow, managers know that if they use current revenues to finance investment purchases, they forgo the opportunity to earn interest.The annual opportunity cost of using a cedi to make an investment can therefore be represented by the real interest rate. The real interest rate is the price of using a cedi to make an investment purchase. Thus, the higher the real rate of interest, the less would be the profits to the business after paying interest and the less it will want to invest and vice versa.
how slustky equation provides neat analytical expression for substitution and income effect?
Comparison with Our Targets : A proper objective assessment of our performance can be carried out only when we juxtapose our current achievements with: (i) planned or targeted
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the law diminishing marginal utility explain through flow chart
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introduction of this model
How to calculate: fixed cost is $1,000,000 tvc $4,400,000, avc is $22, atc $27, worker productivity is 4. How do I calculate the profit or loss?
Comparison with Other Countries: The basic purpose of this type of comparison is that: (i) it helps us to know the potentials of growth that can be built up in an economy,
Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full
#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel
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