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(i) Name 3 non-interest rate determinants of Ig . (ii) Explain why investment is so volatile. (iii) For each of the following cases, determine which
(i) Name 3 non-interest rate determinants of Ig . (ii) Explain why investment is so volatile. (iii) For each of the following cases, determine which direction Ig -line will shift: (a) Business taxes fall. (b) A widespread pessimistic outlook about the economy. (c) Technological improvement and innovation. (d) Businesses want to increase inventories (e) Expected rate of return on capital falls. (f) The cost of acquiring capital rises.
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