Why will a reduction in the real interest rate increase investment spending, other things equal?

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Macroeconomics

ISBN: 9780077337728

19th Edition

Authors: Campbell Mcconnell, Stanley Brue, Sean Flynn, Flynn Mcconnell Brue

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Question Posted: Feb 16, 2024 10:00 AM

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Why will a reduction in the real interest rate increase investment spending, other things equal?

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A reduction in the real interest rate tends to increase investment spending due to its impact on the cost of financing for businesses Heres an explana...View the full answer

Macroeconomics

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