Show Graphically on the Below Graph the Expected Relationship Between

question 39

Essay

Show graphically on the below graph the expected relationship between investment spending and interest rates.Put investment expenditures on the horizontal axis and the rate of interest on the vertical axis;connect the points and label the curve "Investment demand".Describe this relationship between the rate of interest and investment expenditures.Describe the slope of the investment curve.

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Definitions:

Returns To Scale

The rate at which production increases in response to proportional increases in all inputs.

Returns To Scale

The rate at which output changes if the scale of all inputs is changed by the same proportion in the production process.

Input

Resources used in the production process to generate goods or services, including labor, raw materials, and capital.

Output

The total amount of goods or services produced by a company, sector, or economy within a specific time period.