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 66 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
Great answer, keep it coming :)

shailee

  • Member
  • Posts: 392
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Personal Beliefs Influence Grades Personal Beliefs Influence Grades
Maze-dull rats did not make significantly more errors than maze-bright rats when both groups were ... Maze-dull rats did not make significantly more errors than maze-bright rats when both groups were ...
Solve the following log function: Solve the following log function:
You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ... You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ...
The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum
calculate the quantities required to make 5 lb of hydrophilic ointment: calculate the quantities required to make 5 lb of hydrophilic ointment:
Video: Sex-Linked Traits! How are eye colors inherited in fruit flies?

For a complete list of videos, visit our video library