A. Consumption is a function of the rate of change of income
B. income is a function of the rate of change of investment
C. Investment is a function of the rate of change of income
D. Investment is a function of the rate of interest
Correct Answer:
Option C – Investment is a function of the rate of change of income
Explanation
Investment depends on the rate of change in income and that a change in income will cause a greater proportionate change in investment.
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