Author Question: According to the classical model, investment A) is a function of the nominal GDP. B) is ... (Read 38 times)

Kthamas · **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.