Explain the intuition of why investment depends on r.(b) Show the impact on your diagram of each of the following
Consider the model of fixed business investment.(a) On an r vs. I diagram, sketc Consider the model of fixed business investment.(a) On an r vs. I diagram, sketch a curve showing how investment depends on the real interest rate, based on our Investment function, In(). Explain the intuition of why investment depends on r.(b) Show […]


