How Interest Rates Affect Planned Investment: In the Keynesian Model, Planned Investment is Inversely Related to
Introduction One of the key components of aggregate demand in the Keynesian model of macroeconomics is planned investment. Planned investment refers to the amount of spending that firms intend to do on new capital goods, such as machinery, equipment, buildings, and inventories. Planned investment is important for economic growth, as it adds to the productive … Read more