Answer:
disposable income; the real interest rate
Explanation:
The consumption function is given as
C = Cā + Cā(Yd)
Where
Cā = autonomous consumption
Cā = non autonomous consumption
Yd = disposable income
From the above equation, consumption is a positive function of disposable income.
The investment function is given as
I = Iā - Iā(r)
Where
Iā = autonomous investment
Iā = non autonomous investment
r = interest rate
From the above equation, it can be seen that investment is a negative function of interest rate.
I hope my answer helps you
