Real Theory of Interest
ثبت نشده
چکیده
Desired Saving Equals Desired Investment The theory says that the real interest rate r adjusts so desired saving S equals desired investment I (figure 1). As the real interest rate is the cost of capital to the firm, a lower real interest causes higher investment demand. And as the real interest rate is the return to saving, a higher real interest rate creates a greater incentive to save; and saving increases. In equilibrium desired saving equals desired investment.
منابع مشابه
Macro-Economic Impacts of Lowering Interest Rate: A Real-Financial CGE Evaluation for Iran
In Iran, interest rate is regulated by government by setting a ceiling for the credits allocated to various economic sectors. In recent years, the old theory of financial repression in the form of reducing interest rate of credits has been considered as a necessity to stimulate and encourage investment and economic sectors expansion in Iran. This study investigates the effects of this poli...
متن کاملExistence solutions for new p-Laplacian fractional boundary value problem with impulsive effects
Fractional differential equations have been of great interest recently. This is because of both the intensive development of the theory of fractional calculus itself and the applications of such constructions in various scientific fields such as physics, mechanics, chemistry, engineering, etc. Differential equations with impulsive effects arising from the real world describe the dyn...
متن کاملEditorial Volume 5, Issue 2
Our Journal's tendency towards the real world in applied linguistics and literary studies should have significant epistemological and methodological consequences in researching the fields. The interest in the real world makes the problems we may have in our everyday lives our 'points of departure' in research. According to my experience of research in our universities throughout their history, ...
متن کاملLegal Analysis of bank in the Iranian commercial market based on the theory of transaction costs
Understanding the necessity of establishing a bank in Iran requires a correct realizing of the mechanism of the money market in an era in which banks had no place or position. At that time distrusting on the borrower credits, lack of reliable information about the number and place of lenders, rising interest rates and the prevalence of high- interest borrowing were some of the costs that transa...
متن کاملPERRON-FROBENIUS THEORY ON THE NUMERICAL RANGE FOR SOME CLASSES OF REAL MATRICES
We give further results for Perron-Frobenius theory on the numericalrange of real matrices and some other results generalized from nonnegative matricesto real matrices. We indicate two techniques for establishing the main theorem ofPerron and Frobenius on the numerical range. In the rst method, we use acorresponding version of Wielandt's lemma. The second technique involves graphtheory.
متن کاملElastic analysis of Shrink-fitted Thick FGM Cylinders Based on Linear Plane Elasticity Theory
Nowadays, functionally graded materials (FGM) are widely used in many industrial, aerospace and military fields. On the other hand, the interest in the use of shrink-fitted assemblies is increasing for designing composite tubes, high-pressure vessels, rectors and tanks. Although extensive researches exist on thick-walled cylindrical shells, not many researches have been done on shrink-fitted th...
متن کامل