Matthew_McCoy_Week_6_Chapter_28_Assignment - Matthew McCoy...

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Matthew McCoy ECON201 Week 6 Chapter 28 Assignment July 12, 2011 Professor John Volpe 1. What is an investment schedule and how does it differ from an investment demand curve? An investment schedule is a curve or schedule that shows the amounts firms plan to invest at various possible values of real GDP (McConnell, Brue, & Flynn, 2011, pp. G-14). The investment schedule shows the amount of investment forthcoming at each level of GDP (McConnell, Brue, & Flynn, 2011, p. 568). The investment demand curve shows the amounts of investment demanded by an economy at a series of real interest rates (McConnell, Brue, & Flynn, 2011, pp. G-14). 4. Other things equal, what effect will each of the following changes independently have on the equilibrium level of real GDP in the private closed economy? a. A decline in the real interest rate. Equilibrium level would rise b. An overall decrease in the expected rate or return on investment. Equilibrium level would fall. c.
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This note was uploaded on 09/24/2011 for the course ECON 202 taught by Professor Unknown during the Spring '08 term at Mountain State.

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Matthew_McCoy_Week_6_Chapter_28_Assignment - Matthew McCoy...

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