According to the classical model, investment A) is a function ...

[Kthamas]

According to the classical model, investment
 
  A) is a function of the nominal GDP.
  B) is inversely related to the interest rate.
  C) is a function of real GDP.
  D) is influenced by the money illusion at low income levels.

Question 2

Where the consumption function intersects the 45-degree line
 
  A) consumption will equal only autonomous consumption.
  B) the average propensity to consume is 0.5.
  C) savings will be negative.
  D) saving will be zero.

[recede]

Answer to Question 1

B

Answer to Question 2

D

[Kthamas]

Thanks for the timely response, appreciate it

[Jossy]

Excellent