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Author Question: Discuss the two components of fixed investment. What will be an ideal ... (Read 28 times)

vicky

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on: Jun 30, 2018
Discuss the two components of fixed investment.
 
  What will be an ideal response?

Question 2

Which of the following is an endogenous variable in our model of the goods market in Chapter 3?
 
  A) consumption (C)
  B) disposable income (YD)
  C) saving (S)
  D) total income (Y)
  E) all of the above


Gabe

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Nonresidential investment represents the purchase of new equipment and structures. Residential investment represents the purchase by people of new homes, condos, and apartments.

Answer to Question 2

E


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