Question #1037

Overarching Limitation

Started by huntlavender · started 2018-04-24 15:15 · last activity 2018-06-18 22:34 · 2 replies

This is the first I'm seeing of this - how is this determined vs just writing out this statement as a sufficient and necessary condition. It's presented in this video like this scenario is something common that we've seen before what am I missing?

Replies

  1. Anita · 2018-04-26 13:38

    "No industrial growth (IG) without new capital investment (NCI)" can be thought of as "there can only be IG with NCI," if that helps. NCI is necessary for IG. Then the next sentence says a reduction in interest rates (RIR) produces NCI. It then follows that RIR, producing NCI, could satisfy a condition for IG. Does that help?

  2. ekaterinaurban@gmail.com · 2018-06-18 22:34

    So according to the video explanation: RIR - NCI which is: No reduction in interest without new capital investment, isn't that supposed to be the other way around: No new capital investment without reduction in interest?

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