If Real Interest Rates Increase, What Will Happen To

question 12

Essay

If real interest rates increase, what will happen to:
a. business fixed investment?
b. residential investment?
c. inventory investment?

---

Definitions:

Pth Percentile

A value on a rank-ordered dataset below which a certain percentage (P) of observations fall.

Observations

Data collected during an experiment or research, representing the values or attributes of variables of interest.

Percent

A way to express a number as a fraction of 100, symbolized by the percent sign (%).

Positively Skewed

A distribution shape where most data points cluster to the left, and the tail of the distribution extends far to the right.