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Author Question: According to the classical model, investment A) is a function of the nominal GDP. B) is ... (Read 45 times)

Kthamas

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on: Jun 30, 2018
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.


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recede

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

B

Answer to Question 2

D


Kthamas

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  • Posts: 546
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

ryhom

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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