On the following graph, use the blue curve to plot investment as a function of disposable income: According to the table, investment is: a. Autonomous with respect to disposable incomeb. Responsive to changes in interest ratesc. Responsive to changes in business expectationsd. Correlated with consumption A terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously toa. Slope upwardb. Shift upc. Shift downd. Slope downward Aggregate ExpenditureReal investment (Billions of Dollars)On the following graph, use the blue curve to plot investment as a function of disposable income:4003002001501001500$775 billion0$855 billion100 200 300 400 500 600 700 800 900 1000Real Disposable Income (Billions of Dollars)According to the table, investment is:Autonomous with respect to disposable incomeO Responsive to changes in interest ratesO Responsive to changes in business expectationsO Correlated with consumptionInvestmentA terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously toGrade It NowSaveContinu CENGAGE | MINDTAPAplia Homework: Aggregate Demand4. Components of aggregate expenditureSuppose the following table shows the components of aggregate expenditure for an economy when disposable income is $400 billion and when it is$500 billion:FarConsumptionInvestmentGovernment PurchasesNet ExportsAggregate ExpenditureReal investment (Billions of Dollars)400350On the following graph, use the blue curve to plot investment as a function of disposable income:300250200150100Disposable Income0$400 billion$300 billion$100 billion$175 billion$200 billion$775 billion$500 billion$400 billion$100 billion$175 billion$180 billion$855 billionAccording to the table, investment is:100 200 300 400 500 600 700 800 900 1000Real Disposable Income (Billions of Dollars)Autonomous with respect to disposable incomeO Responsive to changes in interest rates10Investment(?)ly

INVESTMENT Investment is indeed the commitment of a resource to achieving a value rise over time. A…

Answered: On the following graph, use the blue…

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On the following graph, use the blue curve to plot investment as a function of disposable income: According to the table, investment is: a. Autonomous with respect to disposable income b. Responsive to changes in interest rates c. Responsive to changes in business expectations d. Correlated with consumption A terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously to a. Slope upward b. Shift up c. Shift down d. Slope downward

Aggregate Expenditure
Real investment (Billions of Dollars)
On the following graph, use the blue curve to plot investment as a function of disposable income:
400
300
200
150
100
150
0
$775 billion
0
$855 billion
100 200 300 400 500 600 700 800 900 1000
Real Disposable Income (Billions of Dollars)
According to the table, investment is:
Autonomous with respect to disposable income
O Responsive to changes in interest rates
O Responsive to changes in business expectations
O Correlated with consumption
Investment
A terrorist attack that makes business forecasts more pessimistic would cause the investment function you drew previously to
Grade It Now
Save
Continu

CENGAGE | MINDTAP
Aplia Homework: Aggregate Demand
4. Components of aggregate expenditure
Suppose the following table shows the components of aggregate expenditure for an economy when disposable income is $400 billion and when it is
$500 billion:
F
ar
Consumption
Investment
Government Purchases
Net Exports
Aggregate Expenditure
Real investment (Billions of Dollars)
400
350
On the following graph, use the blue curve to plot investment as a function of disposable income:
300
250
200
150
100
Disposable Income
0
$400 billion
$300 billion
$100 billion
$175 billion
$200 billion
$775 billion
$500 billion
$400 billion
$100 billion
$175 billion
$180 billion
$855 billion
According to the table, investment is:
100 200 300 400 500 600 700 800 900 1000
Real Disposable Income (Billions of Dollars)
Autonomous with respect to disposable income
O Responsive to changes in interest rates
10
Investment
(?)
ly

Expert Solution

Step 1

INVESTMENT

Investment is indeed the commitment of a resource to achieving a value rise over time.
A current item, such as time, money, or effort, must be sacrificed to order to invest.
The goal of investing in finance is to profit from the asset that is being financed.
The return can take the form of income from investments like dividends, interest, or rental income, as well as a combination of capital gains and income.
It can also take the form of unrecognized capital appreciation (or depreciation). The returns may also consist of monetary gains or losses as a result of variations in foreign exchange rates.

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