This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The investment function implies that current output does not influence investment. Does that make ... (Read 112 times)

chandani

  • Hero Member
  • *****
  • Posts: 541
on: Jun 30, 2018
The investment function implies that current output does not influence investment. Does that make sense?
 
  What will be an ideal response?

Question 2

If households save 0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
 
  A) 1.25.
  B) 2.
  C) 5.
  D) 8.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aidanmbrowne

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jun 30, 2018
Answer to Question 1

Yes. Planned investment relies mostly on business expectations of future economic activity. Fluctuations in current activity affect investment as unplanned inventory changes and, perhaps, as an updating of expectations, causing a change in autonomous investment.

Answer to Question 2

C


chandani

  • Member
  • Posts: 541
Reply 2 on: Jun 30, 2018
Excellent

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

The energy input and output of glycolysis. The energy input and output of glycolysis.
April Greiman, Does It Make Sense? April Greiman, Does It Make Sense?
Make a note of the reading on the gauge after the first “puff,” which indicates the first ... Make a note of the reading on the gauge after the first “puff,” which indicates the first ...
How to plot a cosine function containing an amplitude and phase-shift (Question 2 of 2) How to plot a cosine function containing an amplitude and phase-shift (Question 2 of 2)
Possible Sources of Differences in Output per Worker Possible Sources of Differences in Output per Worker
Chilling Effect of a Cold Current Chilling Effect of a Cold Current
Video: How a Urinalysis is Performed

For a complete list of videos, visit our video library