Asked by Sylvia Joseph on Apr 27, 2024
Verified
The main determinants of investment are the interest rates and expected profit.
Investment
Investment involves allocating resources, such as capital or time, in the expectation of generating a profit or benefit in the future.
Interest Rates
A charge, calculated as a percentage of the principal, demanded by a lender from a borrower for assets' usage.
- Ascertain the variables that affect investment and comprehend the idea behind the investment demand curve.
Verified Answer
KM
Kabore Marco Simon KaboreMay 01, 2024
Final Answer :
True
Explanation :
Interest rates determine the cost of borrowing money for investment, while expected profit shows the potential return on investment, both of which are key factors in investment decisions.
Learning Objectives
- Ascertain the variables that affect investment and comprehend the idea behind the investment demand curve.