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Author Question: International trade forces countries to consume a combination of goods that is inside their ... (Read 22 times)

P68T

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on: Jun 30, 2018
International trade forces countries to consume a combination of goods that is inside their production possibilities curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Describe the relationship between investment and the level of disposable income.


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zoeyesther

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

False

Answer to Question 2

Investment is autonomous with respect to disposable income. That is, the level of disposable income does not determine investment, but the level of the interest rate does. A decrease in the interest rate increases autonomous investment and an increase in the interest rate decreases autonomous investment.


P68T

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

jojobee318

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Reply 3 on: Yesterday
Gracias!

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