When sketched as a function of disposable income, the investment demand curve is:
A) always horizontal.
B) always vertical.
C) upward sloping.
D) parabolic.

Question

Quizplus · Accepted Answer

The investment demand curve is typically horizontal when sketched as a function of disposable income because investment decisions are primarily influenced by interest rates rather than changes in disposable income.

When Sketched as a Function of Disposable Income, the Investment