A decrease in autonomous consumption ________. A) lowers ...

[rachel9]

A decrease in autonomous consumption ________.
 
  A) lowers planned expenditures
  B) raises equilibrium output for any level of the interest rate
  C) causes a movement down along the IS curve
  D) all of the above
  E) none of the above

Question 2

In the Solow growth model, the law of motion of capital takes into account
 
  A) the residential nature of houses.
  B) the mobility of capital.
  C) the depreciation of old capital.
  D) the cost of shipping and installing capital.

[carolinefletcherr]

Answer to Question 1

A

Answer to Question 2

C

[rachel9]

YES! Correct, THANKS for helping me on my review

[apple]

Thanks for the timely response, appreciate it