1. Chapter 16 Instability in the Private Economy: Investment

2. Copyright © 2003 by Pearson Education, Inc.16-2 Figure 16-1 Real Gross Private Domestic Investment and Its Three Components, 1960–2001

3. Copyright © 2003 by Pearson Education, Inc.16-3 Figure 16-2 The Behavior of Actual Sales, Expected Sales, Gross Investment, Net Investment, and Replacement Investment for the Mammoth Electric Company Described in Table 16-1.

4. Copyright © 2003 by Pearson Education, Inc.16-4 Figure 16-3 The Relation of the Net Investment Ratio ( I n /Y) to the Growth Rate of Real GDP (ΔY/Y) in the U.S. Economy, 1960–2001

5. Copyright © 2003 by Pearson Education, Inc.16-5 Figure 16-4 The Effect of a Drop in the User Cost of Capital (u) on the Desired Capital-Output Ratio (v*)

6. Copyright © 2003 by Pearson Education, Inc.16-6 Figure 16-5 Change in Real Investment in Computers and Peripherals and in the Computer Deflator, 1988–2001

7. Copyright © 2003 by Pearson Education, Inc.16-7 International Perspective The Level and Variability of Investment Around the World

8. Copyright © 2003 by Pearson Education, Inc.16-8 Figure 16-6 Effect on Output and the Interest Rate of a Shift in the Level of Investment Relative to the Interest Rate