According to the classical model, investment
A) is a function of the nominal GDP.
B) is inversely related to the interest rate.
C) is a function of real GDP.
D) is influenced by the money illusion at low income levels.
B
You might also like to view...
What two things does the amount of property income a household earns depend upon?
What will be an ideal response?
Road traffic
a. should be provided free of charge b. is efficient on a toll road c. creates a positive externality d. is efficient in London, England e. creates a negative externality
If a U.S. company buys an electrical generator made in Japan by a Japanese firm, and the Japanese firm uses the payment to buy stocks issued by a U.S. company then
a. U.S. exports and U.S imports increase. b. U.S. exports but not U.S. imports increase. c. U.S. imports but not U.S. exports increase. d. neither U.S. exports nor U.S. imports increase.
A futures contract is a forward contract with some important differences. Explain.
What will be an ideal response?