The time between a market change that makes investment profitable and actual demand for investment
Investment Demand Schedule
by looking at it
The interest rate is the thing that primarily affects the investment demand curve and an increase in investment indicates a decrease in real interest rate. This makes sense because it is better for borrowers to pay a lower interest rate. Also, better technology can cause the investment demand curve to shift out, also high inventories. If interest rates are expected to be higher in the future, firms will choose to invest now and the lowering of business taxes will result in the investment demand curve to shift outwards.
The aggregate demand curve shifts to the right
Consumption, Investment, Government Expenditure and Net Exports
To work out the best investment you really have to consider supply and demand. Look at how many people are wanting the "investment" and how many people are selling it. If demand is higher then supply than you have a good investment.
Investment Demand Schedule
by looking at it
investment increases.
There are many things that affect the results of your investment exercise. Demand is one thing that affects the results of an investment exercise.
The interest rate is the thing that primarily affects the investment demand curve and an increase in investment indicates a decrease in real interest rate. This makes sense because it is better for borrowers to pay a lower interest rate. Also, better technology can cause the investment demand curve to shift out, also high inventories. If interest rates are expected to be higher in the future, firms will choose to invest now and the lowering of business taxes will result in the investment demand curve to shift outwards.
The aggregate demand curve shifts to the right
Consumption, Investment, Government Expenditure and Net Exports
It lags with slow connection , bad connection or corrupted connection
Foreign investment can have both positive and negative impacts on a country's currency. If there is a significant inflow of foreign investment, it can increase the demand for the country's currency, leading to an appreciation in its value. On the other hand, if foreign investors withdraw their investments, it can decrease the demand for the currency and lead to its depreciation. The impact ultimately depends on various factors such as the size of investment, overall economic conditions, and market sentiment.
What is the 'true' market value? Why is the seller leaving? Am I close to local amenities? What is my target market? Is there sufficient demand? Does the investment stack financially? What is my return on investment? Who is living next door!!?
Accelerator comes from the Principle of Acceleration. In managerial Economics, Acceleration Principle means, the rate of change in aggregate Demand to the Rate of Change in Investment. Eg: A company manufactures 100 pieces of cloth with a textile Manufacturing Equipment. The demand for the textile good is 60. So the firm's investment is much higher than the demand. Suppose the demand increases to 120 pieces. The company can produce only 100 with existing machinery. It will still continue to provide the existing 100 pieces output (without investing in additional machinery) Reason: the diff between demand and Supply is only 20. The investment will be a huge expense against this differential. But when the demand reaches, 180 or 200, the company may plan to invest in a new machinery. The differential is higher. Thus acceleration in aggregate demand leads to acceleration in the rate of Investment. This is a concept of Macro Economics. Gyan Prakash Singh MBA(IT) er_gyanpsingh@yahoo.com