Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the
Question:
Assuming investment is autonomous, draw an investment function with income on the horizontal axis. Show how the function shifts if:
a. The interest rate falls.
b. An investment tax credit is repealed by Congress.
c. A new president is expected to be a strong advocate of pro-business policies.
d. There is a great deal of excess capacity in the economy.
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