Answer to Question #107117 in Macroeconomics for Sthabile

Question

In the simple Keynesian model,which of the following is incorrect about investing?1As income increases,investment also increase 2There is a negative relationship between investment and interest rate 3.investment is autonomous and is illustrated by a horizontal line 4.investment is not effected by the level of income Bwhich of the following is incorrect about imports in the Keynesian model?1They not always taken as independent of the level of income 2.increase when the level of income increases 3.decrease when the level of income increases 4.they may be greater than exports

Answer 1

For the first part of question 4 is incorrect.

For the second part of the question 3 is incorrect.