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Unformatted text preview: 7. Bad Weather (short term) (dont want to drive in bad weather) - Hurricane Katrina Investment spending depends on: 1. Profits 2. Interest rate 3. Tax laws 4. Oil prices 5. Pollution regulations 6. Price controls 7. Capacity utilization (expansion) 8. Biz-con 9. Consumer protection laws (i.e. airbags) 10. Worker protection rights (i.e. OSHA) 11. Corporate debt 12. Vacancy rates Investment is volatile (unlike consumer spending). Government decisions are based more so on politics than economics Net exports depends on 1. exchange rate 2. our trade partners economies 3. protectionism (trade barriers)...
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This note was uploaded on 04/02/2008 for the course ECON 100 taught by Professor Hayworth during the Winter '08 term at Eastern Michigan University.
- Winter '08