Question

What is an investment function ?

Answer 1

Answer:

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Explanation:

The investment function is a summary of the variables that influence the levels of aggregate investments. It can be formalized as follows: I=f - + + where r is the real interest rate, Y the GDP and q is Tobin's q.

Answer 2

✨ANSWER✨

The investment function is a summary of the variables that influence the levels of aggregate investments. It can be formalized as follows

I=f(r,ΔY,q)

where r is the real interest rate, Y the GDP and q is Tobin's q. The signs under the variables simply tell us if the variable influences investment in a positive or negative way .

Hope it helps......