Which of the Following Describes the Investment Function in the IS

question 109

Multiple Choice

Which of the following describes the investment function in the IS curve?

• A) \(I _ { t } = a _ { i } \tilde { Y } _ { t }\)
• B) \(I _ { t } / \bar { Y } _ { t } = \bar { a } _ { t } - \bar { b } \left( R _ { t } - \bar { r } \right)\)
• C) \(I _ { t } = a _ { i } \tilde { Y } _ { t } - \bar { b } R _ { t }\)
• D) \(I _ { t } = \bar { a } _ { i }\)
• E) \(I _ { t } = \bar { a } _ { i } \bar { Y } _ { t }\)

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