Assignment First

本篇代寫essay-企業投資決策與利率讲了2015年,澳大利亞儲備銀行發表了一篇有趣的文章。這篇文章是《企業投資決策與利率》。這篇文章削弱了主流觀點的經濟主張,即企業的投資與利率負相關。澳大利亞央行(Reserve Bank of Australia)提出的這項研究有很多含義。首先,它有助於理解爲什麼不能通過貨幣政策或調節利率來管理總支出。本篇代寫essay由美國第一論文 Assignment First輔導網整理,供大家參考閱讀。

In the year 2015, an interesting article by Reserve Bank of Australia was published. This article was “– Firms’ Investment Decisions and Interest Rates”. This article erodes the economical claims of the mainstream view that the investments of the business are negatively related to the interest rates. There have been many implications of the research presented by Reserve Bank of Australia. Firstly it helps in developing the understanding towards the view that why managing the aggregate spending could not be done through monetary policy or the regulating the rate of interests (Freeman and Hobbes, 1991).

Secondly, the research explains the strength of the mainstream claims that the government spending increases when “crowding out of private expenditure occurs”. The research states that the investment decisions are not subjected to variation in interest rates, which vary in certain range. Thirdly the research reveals that the investment of the business is driven considerably through subjective sentiments instead of being process driven (Lilleyman, 1984). When a firm thinks about investments, their main focus is on calculating the payback period and the rates of return.

Analysis of the Article

The Reserve Bank of Australia has stated that the increase in expenditure within the country has not been responsive due to the fluctuating interest rates in the last few years. According to the Bank, the interest rates are at the lowest level, as the Bank wants to increase the growth in the period of unresponsive domestic demand; an outer shortage and the goal of government to impose fiscal with severity. The economy of the country is below the expected growth rate and unemployment has been increased due to the negative growth in private investments. This is due to the massive investment in the mining sector (Kester, et al, 1999).