Consider the effect of having a zero interest rate. Would this make more investments viable, resulting in
Question:
Consider the effect of having a zero interest rate. Would this make more investments viable, resulting in more investment, meaning more usage of natural resources? Would depletion of natural resources follow? Or not? More investment, using more resources to produce more goods to meet the demand in a market will eventually reach a point where supply matches demand. Any more investments coming online will tip the balance toward oversupply, lower prices and a reduction in the number of viable investments. If this point is within the renewable capacity of the resource then could you consider the market to be operating sustainably?
By using a zero interest rate, would future generations be protected at the expense of the current generation? Would this, in effect, address current world issues, such as poverty, that exist around the world?
Step by Step Answer:
Infrastructure Investment An Engineering Perspective
ISBN: 9781466576698
1st Edition
Authors: David G. Carmichael