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51. the demand curve for investment is downward sloping. when it is graphed, it shows on the horizontal axis and on the vertical axis. (1) income, investment (2
51. The demand curve for investment is downward sloping. When it is graphed, it shows on the horizontal axis and on the vertical axis. (1) income, investment (2) investment, income 3 investment, the interest rate (4) the interest rate, investment (1) 37, f (2) Ad, 3 (3) T, 14) T 7, fPAn .The life cycle hypothesis on consumption behavior sugsests that people at various stages of the life cycle (1) spend everything they earn so saving ends up at zero (2) increase their marginal propensity to cosumc as income increases 3) decrease their marginal propensity to consume as income increases (4) have differing MPCs, which is still consistent with a constant MPC for the economy
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Nidhi taparia Best Answer
51. The right answer is (3). When investment demand function is graphed, investment demand is shown on x axis (horizontal) and interest rate on y axis (vertical). It is downward sloping because investment demand rises when interest rate falls and vice versa.
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