Question
Relationship between investment and savings Financial institutions such as banks, mortgage companies, and finance companies serve as intermediaries between those with a surplus versus those
Relationship between investment and savings
Financial institutions such as banks, mortgage companies, and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a capital injection market.
- In detail, what is the function of the financial market and its influence for the injection of capital?
- It contrasts the responsibility of the financial system in the demand for investment versus the supply of savings.
- Using the concepts of real interest rate and expected rate of return, test the relationship between saving and capital investment.
- Using macroeconomic theory, explain what is the relationship of the financial market with the economic growth of a country?
- What is the dynamic that is expected to occur between the different development policies in the injection of capital as instruments to promote growth, sustainability and economic stability in a country?
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Managerial Economics
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward
5th Edition
1337106666, 978-1337106665
