When sketched as a function of disposable income, the investment ...

[mrsjacobs44]

When sketched as a function of disposable income, the investment demand curve is:
 a. always horizontal.
  b. always vertical.
  c. upward sloping.
  d. parabolic.

Question 2

Supply-siders argue that:
 a. reductions in government spending cut infrastructure investment which hurts private sector investment.
  b. increases in government spending increase infrastructure investment which helps private sector investment.
  c. increases in government spending causes private sector investment to fall because the government pushes up interest rates.
  d. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing.
  e. increases in government spending causes consumption spending to fall because the government purchases push up interest rates.

[nikmaaacs]

Answer to Question 1

a

Answer to Question 2

c

[mrsjacobs44]

Excellent

[ryhom]

TYSM