Multiple Choice
The planned investment function will shift downward if
A) real disposable income increases.
B) the interest rate falls.
C) business expectations become more pessimistic.
D) the existing stock of capital decreases.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: If we observe that interest rates rise
Q138: All of the following will cause an
Q140: A decrease in autonomous investment of $100
Q141: The relationship between households' planned consumption expenditures
Q144: Supposed actual investment is greater than planned
Q146: If the marginal propensity to consume (MPC)decreases,
Q147: Another way of stating that investment is
Q162: In the graph for the consumption function,
Q220: The multiplier effect applies to any<br>A) change
Q429: Suppose the economy is initially at equilibrium,