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Essay

Interest Rates and Other Critical Determinants of Investment Spending in Bangladesh

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Sean D

 

Date added:

March 13, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

11 / 2825

 

Was viewed:

1444 times

 

Rating of current essay:

 
Essay content:

They do so by undertaking policies that influence the rate of interests. The underlying assumption is that investment is negatively related with the rate of investment. Historically, economic theories have suggested negative relationship between investment and interest rates. Changes in either nominal or real interest rates translate into a direct impact on investment spending leading to desired movements in the real economy...
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Changes in either nominal or real interest rates translate into a direct impact on investment spending leading to desired movements in the real economy. Specifically, the Keynesian framework suggests that a decrease in lending rate reduces the cost of investment resulting in higher profit margin for the investors...
displayed 300 characters

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