Profit-maximizing firms will reduce their desired investment when the interest rate rises other things being equal. As

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"Profit-maximizing firms will reduce their desired investment when the interest rate rises other things being equal. As a result, empirical economists should always expect to see a negative correlation between actual investment and the interest rate. Comment.
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Microeconomics

ISBN: 978-0321866349

14th canadian Edition

Authors: Christopher T.S. Ragan, Richard G Lipsey

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