Determine whether the following statements are true or false:- a) If investors are optimistic about future earnings, they will not invest in the present in order to accumulate funds for investing in the future, which will lead to lower aggregate demand. b) The economic increase does not depend on investments, invested in human capital. c) Investment costs are more volatile than consumer expenditures, as they are influenced by changes in the interest rate and the expectations of entrepreneurs

Determine whether the following statements are true or false:- a) If investors are optimistic about future earnings, they will not invest in the present in order to accumulate funds for investing in the future, which will lead to lower aggregate demand. b) The economic increase does not depend on investments, invested in human capital. c) Investment costs are more volatile than consumer expenditures, as they are influenced by changes in the interest rate and the expectations of entrepreneurs

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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