Multiple Choice
The investment function consists of
A) a baseline level of investment (I0) and a term consisting of the real interest rate times the MPC.
B) a baseline level of investment (I0) and a term consisting of the real interest rate times Ir (the slope-of-. the-investment function parameter) .
C) a baseline level of investment (I0) and the real interest rate.
D) a baseline level of investment (I0) and a term consisting of the real interest rate times disposable income.
Correct Answer:
Verified
Correct Answer:
Verified
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