The costs of investment depend on the ______ and the _______.

Question

Quizplus · Accepted Answer

The cost of investment depends on the price of new capital goods, as this represents the upfront cost of acquiring new equipment or technology necessary for production. Additionally, the real interest rate is a crucial factor, as it reflects the cost of borrowing money to finance investments. The lower the real interest rate, the cheaper it is to borrow money and the more attractive investment becomes.

The Costs of Investment Depend on the ______ and the _______

The Costs of Investment Depend on the and the _