Introduction to Economics 2 Deneme Sınavı Sorusu #349567

According to below chart, which assumption is made regarding the investment expenditures (I)?


Investment expenditures are not affected by income

 

Investment expenditures are not affected by interest rate

 

Investment expenditures are not affected by technological improvements

 

Investment expenditures are not affected by capacity utilization

Investment expenditures are constant


Yanıt Açıklaması:

When examining the determination of national income in an economy, we will assume that the investments are autonomous to simplify the analysis, i.e. independent of the current income level. However, this does not mean that we assume that investments are fixed at a certain level. There are a number of factors that cause investment spending to change. We assume that GDP is not one of these factors. In this case, we can draw autonomous investment expenditures parallel to the horizontal axis. This means that if the income increases or decreases, the autonomous investment expenditures will not be affected. In the figure, the investment function (line I) shows that investments at each income level are equal to fixed quantity.

Yorumlar
  • 0 Yorum