Refer to the information provided in Figure 23.7 below to answer the question(s) that follow. Figure 23.7
-Refer to Figure 23.7. In Azora, planned investment does not vary with income. Azora's planned investment function is represented by
A) Panel A.
B) Panel B.
C) Panel C.
D) Panel D.

Question

Refer to the information provided in Figure 23.7 below to answer the question(s) that follow.  Figure 23.7
-Refer to Figure 23.7. In Azora, planned investment does not vary with income. Azora's planned investment function is represented by
A) Panel A. 
B) Panel B. 
C) Panel C. 
D) Panel D.

Quizplus · Accepted Answer

Panel B shows a horizontal line indicating that planned investment is constant (does not vary) regardless of changes in income. Thus, it represents Azora's planned investment function. Panels A, C, and D all show increasing planned investment levels as income increases, which is not consistent with the information provided about Azora.

Refer to the Information Provided in Figure 23