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Determination Of Income And Employment

Question

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What is investment function?

Solution

Investment function. Investment function is the behaviour of investment corresponding to different levels of income/employment. In other words, it is desire or willingness of producers (firms) to invest corresponding to different levels of income/ employment.

Some More Questions From Determination of Income and Employment Chapter

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?

Distinguish between APC and MPC, The value of which of APC and MPC can be greater than one and when?

State relationship between income and saving.

What is saving function (or Propensity to save)?

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