Financing Investment in a Buoyant Economy
During an economic boom, firms' ability to finance investment projects is enhanced through two main channels. Firstly, high profits provide a source of internal funds that can be reinvested. Secondly, access to external financing improves, as banks are more willing to lend and investors are more eager to purchase newly issued shares to provide capital. This dual improvement in financing options facilitates waves of investment during economic upswings.
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Introduction to Macroeconomics Course
Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Financing Investment in a Buoyant Economy
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