Consider the following statements regarding consumption and investment functions:
A) The consumption function in the Keynesian model is linear, with a positive slope equal to the MPC.
B) The investment function is typically considered exogenous in the Classical model.
C) The investment function in the Keynesian model is influenced by interest rates.
D) The consumption function always slopes downward.
Which of the above statements is/are correct?
1
A and B only
2
B and D only
3
A and C only
4
A, B, and C only