2 The major determinants of investment are (a) current sales relative to the produc- tive capacity of
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2 The major determinants of investment are
(a) current sales relative to the produc- tive capacity of the existing productive facilities,
(b) expectations about future sales, and
(c) the interest rate. Keynes perceived that during a period of depressed economic con- ditions, investment would be largely unresponsive to changes in the interest rate.
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Related Book For
Essentials Of Economics
ISBN: 396414
2nd Edition
Authors: James D Gwartney; Richard Stroup; J R Clark
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