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Aggregate Demand, Consumption & Saving · Question 54 of 60

The graph shows an investment function.

Question 54

MediumOriginal question

The graph shows an investment function. What does it tell us?

A horizontal investment line at ₹60 crore, the same at every level of income.
Options for question 54

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. A horizontal line means the value does not change with income: autonomous investment of ₹60 crore.

Concept
Reading the investment function
Typical time
70 s
Your time
—
The rule this testsPlanned investment; ex ante and ex post
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