Please enable JavaScript.
Coggle requires JavaScript to display documents.
Topic 3 (part II) (Investment (Desired capital stock (depends on marginal…
Topic 3 (part II)
-
Stock market
-
Higher MPK => higher future earnings of the firm (higher productivity => higher output) => higher V and q => invest (1)
Lower real interest rate (lower uc) => higher stock prices (more investment) => higher V and q => invest (2)
-
-
-
-