Author Question: Discuss the two components of fixed investment. What will be an ideal ... (Read 52 times)

vicky

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Discuss the two components of fixed investment.
 
  What will be an ideal response?

Question 2

Which of the following is an endogenous variable in our model of the goods market in Chapter 3?
 
  A) consumption (C)
  B) disposable income (YD)
  C) saving (S)
  D) total income (Y)
  E) all of the above



Gabe

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Answer to Question 1

Nonresidential investment represents the purchase of new equipment and structures. Residential investment represents the purchase by people of new homes, condos, and apartments.

Answer to Question 2

E



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