The relationship between investment and GDP is shown by the:
A)consumption of fixed capital schedule.
B)saving schedule.
C)investment schedule.
D)consumption schedule.

Question

Quizplus · Accepted Answer

The investment schedule shows the relationship between investment and GDP by indicating the amount of investment that will take place at each level of GDP. As GDP increases, investment is likely to increase as well, indicating a positive relationship between the two variables. The other choices (consumption of fixed capital, saving, and consumption schedules) do not show the relationship between investment and GDP directly.

The Relationship Between Investment and GDP Is Shown by The