Consider the Simplest Macroeconomic Model,with a Closed Economy and No

question 147

Multiple Choice

Consider the simplest macroeconomic model,with a closed economy and no government.If we assume that desired investment is autonomous with respect to national income,then the investment function (which graphs desired investment against actual national income) will be

• A)negatively sloped.
• B)positively sloped and relatively steep.
• C)positively sloped and relatively flat.
• D)vertical.
• E)horizontal.

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Definitions:

Modeling

The process of learning through the observation of others' behaviors, attitudes, or emotional expressions.

Cognitive Moral Development

Cognitive Moral Development is a theory in psychology that explains how people evolve in their understanding and application of moral principles as they grow.

Social Constraints

The societal or organizational limits that affect an individual's behavior or actions.

Attitude-Behavior Correspondence

The degree to which an individual’s attitude (positive or negative feelings toward an object or idea) predicts their behavior (actions in response to the object or idea).