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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
230 Chapter 10
INTEREST AND INVESTMENT DECISIONS
e classical and neo-classical theories of interest, discussed in the preceding sections, might or might
not explain convincingly how rate of interest is determined in the money market. But, one thing is
certain: in all market economies, there does exist an interest rate structure at which people borrow and
lend money. e rate of interest plays a decisive role in determining the level of investment in a country.
In this section, we will answer the question: How does interest rate gure in investment decisions and
how does the market rate of interest inuence the investment decisions? ...
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Publisher Resources

ISBN: 9788131797655