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
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.
Question : It varies directly with the level of income. It has a positive slope.
Question : Which type of investment is income elastic?
Question : Which of the following are the components of aggregate demand?
Question : Investment and savings are kept equal through a change in the level of
Question : Consumption at zero level of income is called ____________________.
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