Question : It is assumed to be independent of the level of income. It is autonomous in nature.
Option 1: Consumption expenditure
Option 2: Investment expenditure
Option 3: Both A and B
Option 4: Neither A nor B
Answer (1)
23rd Jan, 2024
Correct Answer: Investment expenditure
Solution :
Investment expenditure is assumed to be independent of the level of India. It does not change with the change in income. It is straight line curve.
Hence, Option B is correct.
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