chpt11,12,13 - Irene Ladies Menajang IIC / 100613031...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Irene Ladies Menajang IIC / 100613031 MICROECONOMICS ASSIGNMENT CHAPTER 11 2.Decide whether you agree or disagree and explain your answer. c. Higher interest rates lead to more investment because those investments pay a higher return. *I disagree because if the interest rates is high there will be less investment because the company will hard to pay back again to the bank. There will be more investment if the interest rates is low because it will be easier to the company who invest on the bank to pay them back. 6.What is capital income? What functions does capital income serve? *Capital income is income earned on savings that have been put to use through financial capital markets. Capital income serves several functions. First, interest may function as an incentice to postpone gratification. When you save, you pass up the chance to buy things that you want right now. Second, profit serves as a reward for innovation and risk taking. CHAPTER 12
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

chpt11,12,13 - Irene Ladies Menajang IIC / 100613031...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online