andInterestRates(宏观经济学-加州大学-詹姆斯·课件.ppt

CHAPTER 10
Investment, Net Exports, and Interest Rates
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businesses match the quantity they produce to aggregate demand
automatically creates balance in the financial market
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Fluctuations in Investment
Fluctuations in investment have two sources
changes in the real interest rate
shifts in investors’ expectations about future growth, profits, and risk
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Investment and theInterest Rate
The opportunity cost of an investment project is the real interest rate
the higher the interest rate, the lower the number and value of investment projects that will return more than their current cost and the lower the level of investment spending
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Investment and theInterest Rate
The interest rate that is relevant for determining investment spending is a long-term interest rate
when considering an investment project, a manager must compare the potential profits of the project to the opportunity to make money from a long-term commitment of the funds elsewhere
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Investment and theInterest Rate
Long-term and short-term interest rates are different and do not always move in step
long-term interest rates are usually higher than short-term interest rates
the term premium is the premium in the interest rate that the market charges on long-term loans vis-à-vis short term loans
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Figure - Bond Yield Curves
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Investment and theInterest Rate
The interest rate that is relevant for investment spending decisions is the real interest rate
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