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DDD Question 35 2.5 pts As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n):

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DDD Question 35 2.5 pts As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n): O U-shaped curve. O vertical line. O positively sloped line. O negatively sloped line. O horizontal line. Question 36 2.5 pts In the late 1990s, debt-financed government spending decreased in Mexico. Following this decrease, consumption spending increased. Ricardian equivalence would explain this increase in consumption as the result of: people's expectation of higher future taxes required to pay off government debt. people's expectation of lower future taxes that induce them to save less. automatic stabilization of the economy. the crowding out effect. )an increase in current household disposable income. Question 37 2.5 pts When we assume that investment is autonomous we imply that: it is a fixed constant amount. it is independent of current real GDP. it is a positive function of interest rates. it is actually zero. it has no impact on consumption

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