Monday, March 2, 2015

Unit 3: Notes and Need-To-Knows 2.18.15

ID Graph or Investment Demand Curve:
Downward sloping line with Interest Rate and Investment being inverse.
People make fewer investments when interest rates are high.

Things that can shift ID Graph:
Cost of production: Lower costs shift right

Business taxes: Lower taxes shift ID to the right

Technological Advances: Newer Technologies shifts ID to the right

Stock of capital: Lower capital shift ID to the right

Expectations:
Higher expectations shifts ID to the right.



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