According to the theory first presented in Chapter 3 and developed further in this chapter, the interest

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According to the theory first presented in Chapter 3 and developed further in this chapter, the interest rate and investment are negatively related. Yet both business investment and interest rates tend to fluctuate procyclically, that is, are at their highest levels when the economy is at a high output level. Can you explain the paradox?
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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