ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When technological advances impact future earnings we find important long-term effects: the investment threshold increases, whereas the option value decreases. Finally, earnings volatility postpones investment, while uncertainty due to technological advances expedites investment. Content may be subject to copyright.

Detailed explanation-2: -Invest in technology Information technology can boost productivity in companies of all sizes. It can also reduce costs and improve profitability. Keep up to date with the latest developments in information systems and communications technology and choose the ones that are right for your business.

Detailed explanation-3: -Lower interest rates stimulate investment spending and higher interest rates reduce it. Many factors can affect the expected profitability on investment. For example, if the price of energy declines, then investments that use energy as an input will yield higher profits.

Detailed explanation-4: -An increase in the level of production is likely to boost demand for capital and thus lead to greater investment. Therefore, an increase in GDP is likely to shift the investment demand curve to the right.