Question text If the interest rate rises to 25% would the investment still take place?
Question text If the interest rate rises to 25% would the investment still take place?
Homework Answers
Investment depends on rate of interest as well as rate of return.If the rate of return from investment is higher,for instance 35% then the firm will undertake investment at an interest rate of 25%.
If rate of return is less than 25% then investment would not take place.
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Question text If the interest rate rises to 25% would the
investment still take place?
refer to figure 23.8. the amount of planned investment _____ if the interest rate rises from...
refer to figure 23.8. the amount of planned investment _____
if the interest rate rises from 4% to 8%
Interest rate (%) Planned investment (billions of Figure 23.8 if the interest rate rises from 4% to 8%. Refer to Figure 23.8. The amount of planned investment rises by $150 billion drops by $150 billion remains at $125 billion remains at $275 billion
(a) How long will it take an investment to double in value of the Interest rate...
(a) How long will it take an investment to double in value of the Interest rate is 6% compounded continuously? (Round your answer to one decimal place.) 11.6 years (b) What if the interest is compounded annually? (Round your answer to one decimal place.) x years
Question 25 of the expected inftantionate rises from when the on e the Fisher etects that...
Question 25 of the expected inftantionate rises from when the on e the Fisher etects that the nomine interest rate would not change Question 26 If the ce r ves to depositati decreases and the monetary unchanged the value of the money multiplier wil D estion 27 force, and the p o rtio which of the following expression best describe even investment in the Slow growth model with labor force growth the depreciation The main product of the
"Profit-maximizing firms will reduce their desired investment when the interest rate rises, other things being equal....
"Profit-maximizing firms will reduce their desired investment when the interest rate rises, other things being equal. As a result, empirical economists should always expect to see a negative correlation between actual investment and the interest rate." Comment.
If the bond duration is 2.5 and the market rate of interest (the discount rate) rises...
If the bond duration is 2.5 and the market rate of interest (the discount rate) rises by 1 percentage point, what would be the percentage change in price?
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates rise, so firms decrease investment. c. Interest rates fall, so firms increase investment. d. Interest rates fall, so firms decrease investment. 44. Which of the following shifts money demand to the left? a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate 45. If the world real interest rate exceeds the Canadian real interest...
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the...
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the Federal Reserve must intervene in financial markets to restore the interest rate to its equilibrium value O price of bonds will increase O price of bonds will decrease money supply will increase until the interest rate rises money supply will decrease until the interest rate rises Question 10 (1 point) In the short-run macro model, a decrease in the money supply will O result...
3 (3) Your company makes an investment of $11,000. (a) What interest rate would be required...
3
(3) Your company makes an investment of $11,000. (a) What interest rate would be required to grow this sum to $24,000 in 8 years if interest were compounded semiannually? (b) At an interest-rate of 8% how long will it take to double the original $11,000?
Question ? How many years will take for an investment of 57.500 to grow to $2.000...
Question ? How many years will take for an investment of 57.500 to grow to $2.000 is invested w a lly? At what rate of interest mest you savings of $10,000 he compounded annually for it to grow to 52.000 in years? 12.5-25-5 marks) a lot of 100AED on 5 years. The interest rate is 2% compounded Construct an amortization schedule for the loan repayment (5 Marks) al Question 2 i. How many years will it take for an investment...
If you made an investment of 2000 today about how long would it take for it...
If you made an investment of 2000 today about how long would it take for it to double in value if interest rate on investment is %10?
refer to figure 23.8. the amount of planned investment _____
if the interest rate rises from 4% to 8%
Interest rate (%) Planned investment (billions of Figure 23.8 if the interest rate rises from 4% to 8%. Refer to Figure 23.8. The amount of planned investment rises by $150 billion drops by $150 billion remains at $125 billion remains at $275 billion
(a) How long will it take an investment to double in value of the Interest rate is 6% compounded continuously? (Round your answer to one decimal place.) 11.6 years (b) What if the interest is compounded annually? (Round your answer to one decimal place.) x years
Question 25 of the expected inftantionate rises from when the on e the Fisher etects that the nomine interest rate would not change Question 26 If the ce r ves to depositati decreases and the monetary unchanged the value of the money multiplier wil D estion 27 force, and the p o rtio which of the following expression best describe even investment in the Slow growth model with labor force growth the depreciation The main product of the
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the Federal Reserve must intervene in financial markets to restore the interest rate to its equilibrium value O price of bonds will increase O price of bonds will decrease money supply will increase until the interest rate rises money supply will decrease until the interest rate rises Question 10 (1 point) In the short-run macro model, a decrease in the money supply will O result...
3
(3) Your company makes an investment of $11,000. (a) What interest rate would be required to grow this sum to $24,000 in 8 years if interest were compounded semiannually? (b) At an interest-rate of 8% how long will it take to double the original $11,000?
Question ? How many years will take for an investment of 57.500 to grow to $2.000 is invested w a lly? At what rate of interest mest you savings of $10,000 he compounded annually for it to grow to 52.000 in years? 12.5-25-5 marks) a lot of 100AED on 5 years. The interest rate is 2% compounded Construct an amortization schedule for the loan repayment (5 Marks) al Question 2 i. How many years will it take for an investment...
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