Suppose that autonomous investment level is $100 billion per year.If income in the economy falls,
A)the level of investment will increase
B)the level of investment will decrease
C)the quantity of investment demanded will increase
D)the quantity of investment demanded will decrease
E)investment spending will not change

Question

Quizplus · Accepted Answer

Autonomous investment is independent of the level of income, so it remains constant regardless of changes in income.

Suppose That Autonomous Investment Level Is $100 Billion Per Year