Question

Consumption function and Investment function

07 Jan 2025
Answer :
Word Count : 169
FeatureConsumption FunctionInvestment Function
DefinitionRepresents the relationship between income and consumption.Represents the relationship between income and investment.
Dependent VariableConsumption (C)Investment (I)
Independent VariableDisposable Income (Y)National Income (Y), Interest Rates, Business Expectations
ShapeGenerally upward sloping (increases as income rises).Generally upward sloping (investment increases with income but is also ________ ______ _______ _____ _______ _________ ______ ___ ________ __________.
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