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Economics 012- 2-21-2008

Economics 012- 2-21-2008 - technology o Retire old...

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Economics 012 2/21/2008 - Investment creates the capacity to produce o Investment is a function of sales expectations o Optimism investment capacity Number one way to promote investments (optimism) We do not know how sales expectations are formed - Interest rate o Real vs. nominal - Investment is very often necessary to take advantage of new
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Unformatted text preview: technology o Retire old machinery for new technology o A lot of investment is made to obtain the new technology-Capital and labor are to a considerable degree substitutes-Expected wages o Q/cube theory-Stock market...
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