Change: rate for firms to even think about taking the risk.rate. The real interest rate: Business only invest when the rate of return is greater than the interest rate (r>i) Ex: Taking out a loan for a 1000 dollar   View changes from previous version. (Word count: 812)

Change: ththe real interest rate for firms to even think about taking the risk. The real interest rate: Business only invest when the rate of return is greater than the interest rate (r>i) Ex: Taking out a loan for a 1000   View changes from previous version. (Word count: 817)

Change: Inventory that isn't moving costs the firm money for every second it sits on the shelf, so it would obviously be ill-advised to invest without moving inventory. Expectations: if businesses expect the future sales, future operating costs, and   View changes from previous version. (Word count: 820)

Change: Depending on expectations for the future, a firm may choose to fix capital rather than purchase new units, thus spending less. Irregularity of innovation When there is a new advancement in technology, this causes a surge in capital investment; however, innovation occurs at irregular times Variability of Profits Future   View changes from previous version. (Word count: 769)

Change: i). Investments are not made when interest rate exceeds the expected rate of return (r < i) Expected rate of return: Businesses only make investments when they expect to recieve profits. r = (TR - cost of investment) / cost of investment No guarantees of profits. Firms   View changes from previous version. (Word count: 717)

Change: rise,fall, expected rate of return from prospective investment decreaseincrease causes the investment demand curve to shift to the right Business taxes: An increase in business taxes results in decreasing expected profitability of investments causes the investment demand curve to shift to the left A decrease   View changes from previous version. (Word count: 685)

Change: return:return: Businesses only make investments when they expect to recieve profits. r = (TR - cost of investment) / cost of investment No guarantees of profits. Firms are risk takers. The real interest rate:rate: Business only invest when the rate   View changes from previous version. (Word count: 685)

Change:  Generally, any factor that leads businesses collectively to expect greater rates of return on their investments increases investment demand Acquisition, maintenance and operating costs: When these costs increase, expected rate of return from prospective investment decreases causes the investment demand curve to shift to the left When costs   View changes from previous version. (Word count: 685)

Change: When firms are running low with capital goods, firms tend to increase investment, therefore, shifting the ID curve to the right expectations:Expectations: if businesses expect the future sales, future operating costs, and future profitability to be not so good, they won't increase their investment. cause the investment   View changes from previous version. (Word count: 635)

Change:  opposite Variability of Expectations Businesses tend to react to future expectations but that is unpredictable and can change quickly The stock market helps as one of the indicators of society's confidence in businesses so this influences the decisions made by firms. However, stocks themselves are unpredictable and fluctuates greatly.   View changes from previous version. (Word count: 571)