If investment spending is autonomous or independentof income, the slope of in the investment curve is:A. verticalO B. horizontalO C. positiveO D. negativeO E. infinite

In an economy, investment spending refers to the total amount of money used by the busineses to make…

Answered: If investment spending is autonomous or…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

See similar textbooks

Similar questions

Assume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.
Which of the following will shift the consumption function upward? O a. An increase in disposable income O b. An increase in the interest rate O c. A decrease in disposable income O d. Expectations of lower prices in the future O e. A lower interest rate
Please answer fast please arjent help please ASAP pls answer fast
If real disposable income increases by $1500, consumption expenditures will 15 J غير مجاب عليه بعد. إختر أحد الخيارات 1.00 a .decrease by less than $1500 .a O .stay constant b O .increase by less than $1500.c .increase by more than $1500 d O
Which curve is drawn at 45 degree to show income and consumption relationship? O a. Y=C O b. Y=S O c. S=Y-C O d. C= a+ By
Suppose that interest rates fall. This will cause: the present values of investment projects to fall; this will cause investment to rise a. Ob. the present values of investment projects to fall; this will cause investment to fall Oc the present values of investment projects to rise; this will cause investment to rise the present values of investment projects to rise; this will cause investment to fall Od.
What is the effect of an increase in expected future income on the consumption function? An increase in expected future income O A. creates a rightward movement along the consumption function B. shifts the consumption function upward C. creates a leftward movement along the consumption function O D. decreases consumption expenditure Click to select your answer.
Which of the following is not a valid expenditure function? OU P.P, O UP, O None of these can be expenditure functions O (P. + P,) VŨ P+P
Suppose the MPC in an economy is 0.65 The APC is initially 0.5 and disposable income is $8 billion If disposable income incieases to $17 billon, what is the new level of saving?
. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal Options are 3800,2800,1800,4800. Don't copy previous question becuase it is wrong?
7
How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? O a. Negative effect on net exports O b. Negative effect on the gross domestic capital formation O c. Increase in government's budget O d. Positive effect on private consumption

SEE MORE QUESTIONS

Recommended textbooks for you

ECON MACRO

Economics

ISBN:

9781337000529

Author:

William A. McEachern

Publisher:

Cengage Learning

Economics (MindTap Course List)

Economics

ISBN:

9781337617383

Author:

Roger A. Arnold

Publisher:

Cengage Learning

Macroeconomics

Economics

ISBN:

9781337617390

Author:

Roger A. Arnold

Publisher:

Cengage Learning

ECON MACRO

Economics

ISBN:

9781337000529

Author:

William A. McEachern

Publisher:

Cengage Learning

Economics (MindTap Course List)

Economics

ISBN:

9781337617383

Author:

Roger A. Arnold

Publisher:

Cengage Learning

Macroeconomics

Economics

ISBN:

9781337617390

Author:

Roger A. Arnold

Publisher:

Cengage Learning

MACROECONOMICS

Economics

ISBN:

9781337794985

Author:

Baumol

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS

If investment spending is autonomous or independent of income, the slope of in the investment curve is: O A. vertical O B. horizontal O C. positive O D. negative O E. infinite