Question

What are the causes of change in formation of commerce ?
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Answer 1

Answer:

Just as fluctuations in demand, fluctuations in investment is one of the main causes of business cycles. The investments will fluctuate on the basis of a lot of factors such as the rate of interest in the economy, entrepreneurial interest, profit expectation, etc.

Answer 2

Causes of change in formation of commerce :-

Causes of the business cycle

• Interest rates. Changes in the interest rate affect consumer spending and economic growth.
• Changes in house prices
• Consumer and business confidence
• Multiplier effect
• Accelerator effect
• Lending/finance cycle
• Inventory cycle
• Real business cycle theories.

Hope it helps you......