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Title: Ms

Essay Details

Subject: Business
Author: Jessica B
Date: November 26, 2015
Level: University
Grade: B
Length: 3 / 635
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

And economic activity can be defined as the total level of output of goods and services over a period of time (Dixon & O’Mahony, 2004). There are many factors determining the level of investment and increasing in business spending can increase the level of economic activity. Interest Rates A change in interest rates is the most important factor influence business investment...

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Interest rates refers to the cost of borrowing to purchases fund for business investment (Dixon & O’Mahony, 2004), therefore a decrease in interest rates result in the lower cost of borrowing funds, so that business can invest more in new capital equipment. Figure 1 illustrates that if interest rate fall from 5% to 4%, the planned investment increase from $100 billion to $120 billion (Taggart, Findlay & Parkin, 2003, pg...

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