Multiple Choice
In the simple Keynesian model, if desired investment is greater than desired saving:
A) the multiplier effect will move the economy to a lower income level.
B) income and output will rise.
C) interest rates will fall.
D) actual savings will fall as the economy moves to a lower output level.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: In Keynesian macroeconomic equilibrium, AE = Y
Q46: If the interest rate increases, investment will<br>A)
Q56: If income is $22,150 and taxes are
Q64: The reason business investment is sensitive to
Q181: The average propensity to consume is<br>A) always
Q222: AE is equal to C + I
Q224: During the millennium scare of 2000, Rufus
Q229: Which is true about differences in savings
Q231: (Table) The table shows data on
Q268: In an economy with three sectors (household,