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 92 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
:D TYSM

bitingbit

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

How to use right endpoints to find an expression showing the area of a function How to use right endpoints to find an expression showing the area of a function
How B Vitamins Function as Coenzymes (b) How B Vitamins Function as Coenzymes (b)
Periodic Function Modelled Periodic Function Modelled
Given the parent function f(x)=log10(bottom exponent)x, state the equation of the function that Given the parent function f(x)=log10(bottom exponent)x, state the equation of the function that
Consider a two-period economy with no investment opportunities: first and second period output ... Consider a two-period economy with no investment opportunities: first and second period output ...
Structure and function of the Gal4p activator Structure and function of the Gal4p activator
Video: Osteoporosis

For a complete list of videos, visit our video library