Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the

Question:

Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the function shifts if:

a. The interest rate falls.

b. An investment tax credit is repealed by Congress.

c. A new president is expected to be a strong advocate of pro-business policies.

d. There is a great deal of excess capacity in the economy.

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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