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 115 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

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Brain mass as a function of body mass in mammals. Brain mass as a function of body mass in mammals.
A food diary can help patients identify unhealthy eating habits and make healthy choices. A food diary can help patients identify unhealthy eating habits and make healthy choices.
How to write a sine function when given the amplitude, period, and phase shift How to write a sine function when given the amplitude, period, and phase shift
Role of Factors of Production in Determining Output per Worker, 2009 Role of Factors of Production in Determining Output per Worker, 2009
Sketch a graph of the function h(x), by hand on the following interval: Sketch a graph of the function h(x), by hand on the following interval:
Algebraically determine the x intercept of the exponential function Algebraically determine the x intercept of the exponential function
Video: Properties of macromolecules (Explained with No Audio)

For a complete list of videos, visit our video library