In the simple aggregate expenditures model,planned investment is
A)a function of disposable income
B)a function of profit expectations
C)a function of the interest rate
D)autonomous
E)all of the above

Question

Quizplus · Accepted Answer

Planned investment is considered autonomous in the simple aggregate expenditures model, meaning it is not determined by any of the factors listed in the other choices. While disposable income, profit expectations, and the interest rate may affect investment decisions, they are not explicitly modeled in the basic framework of the model.

In the Simple Aggregate Expenditures Model,planned Investment Is