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nekit [7.7K]
3 years ago
9

Suppose that consumption decreases. What is the effect on investment and real interest rate? Analyze using graphs. Briefly descr

ibe.
Business
1 answer:
Talja [164]3 years ago
8 0

Answer:

Interest rates and investment

If interest rates are increased then it will tend to discourage investment because investment has a higher opportunity cost. With higher rates, it is more expensive to borrow money from a bank. Saving money in a bank gives a higher rate of return.

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into how many geographical region Nepal has divided? describe them in a few line

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Why are labor unions able to negotiate effectively with companies where individual workers can't?
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Labor unions can use the power of collective bargaining and strikes to make management listen. Instead of using the power of one, easily replaced worker, the union uses the power of all workers for leverage.

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An investment should be undertaken A) if the present value of the expected income stream associated with the investment is great
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A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.

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