0
In a nutshell, the key determinants that affect investment are:
- The Keynesian Marginal Efficiency of Capital Theory, I=f(r)
- The Keynesian explanation if there is non ceteris paribus, I=f(all other factors)
- The Accelerator Theory
- The role of firms' profits
- And then a collection of the other factors, being exchange rates et cetera.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoOne factor that determines the level of investment is the amount of disposable income available. Another factor is the amount of expenditure.
Add your answer:
Earn +20 pts
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
Factors influencing economic growth?
That'll be any factors that influence the components of the Aggregate Demand (Consumption + Investment + Government spending + Net exports). Any factors that influence each and every component of AD will affect economic growth (through the multiplier process).
Why is investment so important to GDP?
investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.
What does investment affect in the keynesian model?
Government expenditure.
How do economic factors geographical factors historical factors and political factors affect my culture today?
This affect the culture as the culture you adopt must be in line with all the factors.
What factors affect the rate of return of an investment at maturity?
What factors affect the rate of return of an investment at maturity?
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
Factors that affect the location of a business?
Availability of raw materials - resources , sufficient power supply , large labor supply , money for investment in industries , efficient transportation system, closeness to markets, cities, towns, and incentives to attract industry are factors that affect industry location
What are the factors affecting foreign investment?
check
What factors affect reliability?
factors affect reliability
What it external rate of return?
The rate of return on an investment, adjusted for external factors, such as interest paid or received i.e. factors that are not the actual investment itself.
Factors influencing economic growth?
That'll be any factors that influence the components of the Aggregate Demand (Consumption + Investment + Government spending + Net exports). Any factors that influence each and every component of AD will affect economic growth (through the multiplier process).
What factors make up the best investment for retirement planning?
Factors that make up the best investment for retirement planning include safety and security of the the company that you will be investing in. Be sure to check on those factors.
What factors usually affect pricing?
What factors usually affect pricing?
What are Environmental factors that affect a business?
how environmental factors affect in business
Why is investment so important to GDP?
investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.
What does investment affect in the keynesian model?
Government expenditure.
