Economics - Quiz-2-Reviewer
Economics - Quiz-2-Reviewer
Production cannot occur without prior saving Downward-sloping demand curve for investment (individual industries)
➢ Because production takes time ➢ More is invested when the opportunity cost of borrowing is lower
• During which goods and services are not Investment demand curve for the entire economy
available from current production ➢ Downward sloping
➢ Production needs capital
➢ Producers can also borrow funds
CONSUMPTION, SAVING, AND TIME OPTIMAL INVESTMENT