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    Foundations of Macroeconomics Study Set 1
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    Exam 10: Finance, Saving, and Investment
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    Explain the Relationship Between the Real Interest Rate and Investment
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Explain the Relationship Between the Real Interest Rate and Investment

Question 244

Question 244

Essay

Explain the relationship between the real interest rate and investment demand.Compare that relationship to the relationship between expected profit and investment demand.

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The real interest rate determines the qu...

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