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In: Economics

Briefly describe the primary determinants of aggregate investment. Defend the relationship that exists between reductions in...

Briefly describe the primary determinants of aggregate investment. Defend the relationship that exists between reductions in the real interest rate and the overall level of investment. Discuss two factors that lead to the observed historical volatility in investment spending. Explain a possible scenario in which aggregate investment spending decreases despite there being a decline in the economy’s real interest rate.

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