Suppose investment demand rises in an autarky. Which of the following statements or graphs correctly indicate the long-run economic impact according to the classical model when consumption depends only on disposable income?

Assume the graph below indicates the long-run impact on the loanable funds market of a closed economy. Select all scenarios for which the above graph correctly illustrates the long-run effect according to the classical model.Note: This is a multiple-answer question; thus, more than one option may be correct. a. An increase in government expenditure. b. A decrease in transfer payments. c. A decrease in taxes. d. A decrease in government expenditure.

Suppose the government of a closed economy reduces social welfare benefits. Which of the following statements or graphs correctly indicate the long-run economic impact according to the classical view with fixed supplies of labour and capital?

Suppose the government of a small open economy reduces social welfare benefits. Which of the following statements or graphs correctly indicate the long-run economic impact of the fiscal policy change on the small open economy according to the classical model?

Suppose the government of a very large open economy implements a contractionary fiscal policy. Which of the following statements or graphs correctly indicate the long-run economic impact of the foreign fiscal policy on a small open economy according to the classical model?Note: This is a multiple-answer question; thus, more than one option may be correct.a.Domestic output decreases.b.Domestic output remains unchanged.c.d.

Investment demand (I)When one observes consumption and investment patterns over time, one finds that:QUESTION 8SELECT ONE:a.like consumption, investment is fairly stable over time.b.like consumption, investment is fairly erratic over time.c.unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time.d.investment is rarely affected by technological and economic factors.e.unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations.