--%>
Assignment Help - homework help

Define investment demand function

Investment demand function: Investment demand function is the relationship among rate of interest and investment demand. There is an inverse relationship among the rate of interest and investment demand.

High interest rate implies lower level of investment demand. It is since higher rate of interest is to be matched with uniformly higher marginal effectiveness of capital. MEC begins reducing as investment level is increased. Accordingly, investment demand would rise only corresponding to the lower level of MEC all along with lower level of rate of interest.

   Related Questions in Microeconomics

  • Q : Occurrence of the price discrimination

    Price discrimination occurs when a good is: (1) priced by a formula yielding monopoly profit. (2) denied to customers who refuse to pay the going price. (3) sold at different prices not reflecting differences in costs. (4) subject to government price

    		•
  • Q : Neoclassical and heterodox One of my

    One of my friends can't succeed to get the answer of this question. Provide answer of this question. Economists of neoclassical argue that goods contain just subjective (or personal) use-value dimension; heterodox economists argue that goods contain use-value and soci

    		•
  • Q : Natural barriers to entry in network

    Assume that an equipment or software firm has copyrights and patents which restrict other firms from producing goods embodying its technology, and which the firm is shielded from competition since customers can deal along with each other at lower costs when they utili

    		•
  • Q : Cumulative Effect What do you mean by

    What do you mean by the term Cumulative Effect?

    		•
  • Q : Implication of buyers in market

    Describe the implication of big number of buyers in the perfectly competetive market.

    		•
  • Q : Economic of short-run shuts down firm

    When a firm shuts down within the short run, in that case it’s economic: (w) profit is zero. (x) resources have zero opportunity cost. (y) loss equals its fixed cost. (z) value to shareholders rises. Please guys help to solve

    		•
  • Q : Reduce average total costs by

    Individual pure competitive firms as well as firms along with market power may each be capable to: (i) reduce average total costs by increasing the size of its operations or economies of scale else decreasing the size of its operations [as diseconomie

    		•
  • Q : Economoic the setting of a price

    the setting of a price ceiling below the equililbrium level will

    		•
  • Q : Are you being charged too much for

    This exercise inspects the higher prices charged in UK for music downloads as compared to the rest of Europe.

    		•
  • Q : Define Invisible items Invisible items

    Invisible items: All kinds of services that are rendered to or obtained from abroad are termed as invisible items. Such are invisible as these are not made up of any matter or material. The record of such items is not obtainable with the ports. Illust

    		•