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Issue:

Business

 

Written by:

Jim S

 

Date added:

February 7, 2017

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 635

 

Was viewed:

5730 times

 

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Essay content:

And economic activity can be defined as the total level of output of goods and services over a period of time (Dixon & O’Mahony, 2004). There are many factors determining the level of investment and increasing in business spending can increase the level of economic activity. Interest Rates A change in interest rates is the most important factor influence business investment...
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Interest rates refers to the cost of borrowing to purchases fund for business investment (Dixon & O’Mahony, 2004), therefore a decrease in interest rates result in the lower cost of borrowing funds, so that business can invest more in new capital equipment. Figure 1 illustrates that if interest rate fall from 5% to 4%, the planned investment increase from $100 billion to $120 billion (Taggart, Findlay & Parkin, 2003, pg...
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