Multiple Choice
Compared to the closed economy Keynesian model,the open economy model in which imports are a function of income has an investment multiplier that is
A) smaller.
B) larger.
C) equal.
D) equal to 1.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: The short-run refers to a period<br>A)of a
Q25: In the simple Keynesian model (no money
Q26: Income has risen in the simple Keynesian
Q27: In the Keynesian model,exogenous variables include<br>A)planned investment.<br>B)taxes.<br>C)planned
Q28: Total planned expenditure is composed as<br>A)planned investment.<br>B)planned
Q30: If the government decreases spending and taxes
Q31: The Keynesian explanation of the Great Depression
Q32: Keynes believed that an important source of
Q33: If the consumption function is given by
Q34: An increase in taxes<br>A)reduces income by more