Final answer:
The finance function encompasses economic analysis of investment proposals and provision of funds, with investment levels reflected as steady in the short-term regardless of current GDP.
Step-by-step explanation:
The activities of economic analysis of investment proposals and provision of funds are typically associated with the finance function. Finance deals with how corporations handle their funding sources, capital structuring, and investment decisions. Among these responsibilities are the economic analysis of investment proposals—to assess their feasibility and potential returns—and the provision of funds to support these investments.
Investment functions in economics are usually depicted as flat lines in Keynesian cross diagrams, indicating that investment does not change with the level of current national income. For example, Figure B3 illustrates the investment function at an investment expenditure level of 500, which is constant regardless of the current GDP. However, this investment level can shift if there are changes in technology, economic growth expectations, or interest rates.