In the Income-Expenditures model, autonomous expenditures:

a. include autonomous consumption, government expenditures, a net export component, but not autonomous investment.

b. are of relative unimportance

c. vary little over time.

d. are expenditures independent of the level of (current) income.

In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:

a. because investment decisions are never based on the level of current income.

b. because investment decisions are determined by interest rates only.

c. totally unrealistic.

d. because investment decisions tend to be based more on the future than the present.

Which of the following is the primary explanation for big swings in the business cycle?

a. changes in investment.

b. changes in the mpc.

c. changes in consumption.

d. abrupt changes in stock market prices.