Multiple Choice
If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9,then
A) more information is needed.
B) output will decrease by 900.
C) output will decrease by 10,000.
D) output will increase by 10,000.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q29: Compared to the closed economy Keynesian model,the
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
Q35: Which of the following is FALSE?<br>A)As the