(Solved): 2. When plotting consumption (C) and investment (1) demand curves with interest rate (r) on the ver ...

2. When plotting consumption (C) and investment (1) demand curves with interest rate (r) on the vertical axis, Cd lies to the right of Id, and I is relatively steeper than Cd. These arises from the stylized facts that consumption is the contribution to GDP than investment, and consumption is than investment. a. larger; more volatile b. larger; less volatile c. smaller ; more volatile d. smaller ; less volatile