Question

Because intended investment is independent of the level of national income, we graph the investment curvepDownward Sloping

Upward Sloping

Horizontal

Vertical
​

Answer 1

Answer:

The first National Income calculation on a scientific basis in India is in the year ... Under Keynesian cross model , rate of interest is ... In Keynesian model of income determination autonomous investment occurs due to.

Answer 2

Answer:

Concept:

The Investment function in the economy is independent of the level of national income.

To find:

The graph of investment curve

Solution:

• Since the investment function is independent of the income level, the amount of investment will not change with change in income.

• When the change in income does not affect the amount of investment, the curve will be horizontal to the x-axis.
• Therefore, the investment curve will be horizontal.